Energy snap shot, cold front pushes prices
Colder weather for the UK and France pushes prices high this week
Gas increased marginally following reduced imports & withdrawals with premiums showing due to colder forecasts for the last few days of January and the first week of February, electricity remained unchanged from Friday.
Germany expects no real change in temperatures but the UK & France are forecast at much colder levels, lifting gas prices, with demand down next week’s weather is the main driver in price movement, this effects coal which in turn effects electricity as it is a required fuel for energy production, renewable generation is remaining around the seasonal norm.
The upward trend of gas prices continues from the previous day, Sterling loses value against the Euro which pushes prices further in the wrong direction.
A colder weather outlook in addition to the modelling ensembles widening, signifying the possibility of even colder weather – this drives gas prices upwards.
The trend continues again with the weather, oil has now stabilised following a 15% increase over the Dec-Jan period, the Russian Energy Minister has been quoted as saying that they may cut production quicker than previously agreed to balance the market.
Forward prices do continue to look a lot better for both gas & electricity (ignoring Winter 2017 through to 2018 which is showing high prices) but continue to go up following the most recent trend.