Energy snap shot - Rough storage issues and warmer weather
Rough Storage has continued isuues to the wells currently looking like it will hinder teh injection of gas during the summer
Weather forecasts changed by as much as 3 degrees warmer in some areas, this has eased some demand concerns and thus caused a decrease in prices across the board, coal has shed some value with the weather being the main factor – prices are much better than the previous week !
News that Rough Storage will have less available injection over the summer means that prices will decrease for the summer months as there will be increased supply in the UK system.
The warmer weather has aided the Grid’s capacity prediction which is currently adequately covered, this was further weighed on by increased wind generation pushing prices lower.
Whilst short term prices have improved, longer dated prices (2019+) have gained slightly possibly due to further ahead forecasts on oil prices, production cuts aren’t making or aren’t due to make a considerable impact at the moment but this could change if supply/demand changes considerably.
The recent models of progressively warmer temperatures have reversed marginally causing the drop in prices to temporarily halt and actually start to move upwards.