Gas prices flat as summer season starts
Tuesday 18th April 2023
Having looked more bullish at the start of April with colder temperatures recorded, gas and power prices have eased again, with the October power annual shedding 11% from recent peak. As we move into the summer season, gas demand will naturally ease, and increased solar generation will come into the mix like never before – this should give much greater price stability in the coming weeks and months.
Whilst the overriding sentiment seems to indicate prices should ease further, this has to be balanced against some upward pressure. As has previously been mentioned, French industrial action is having a material effect on nuclear power generation with refuelling and maintenance delayed. The UK tends to import French baseload at this time of year, so generation issues are felt here. Oil prices are also firmer, which could act as an upward driver in a wider energy context. This is down to reduced Russian exports and increased Chinese demand (post-lockdown).