Weather hits power and gas markets in late January

Monday 6th February 2017

Power and gas markets have seen a degree of volatility over the last fortnight. As has been the pattern across the winter, price movements are being driven by European weather patterns deviating from expectation. An intense cold snap across continental Europe increased gas demand and dragged things up. The effect of demand spikes are more pronounced whilst the problems with the Rough gas storage facility persist. October and April power Annuals are near where they were mid-January, whilst short term has been helped by the latest named storm Doris roaring in from the Atlantic, driving wind generation. Oil seems to be held around the $55 - $56 mark, evidently shored up by the OPEC production cut policy. However, the price does not seem to have great upward momentum, as the new $50+ price point is encouraging renewed production in the States.