Energy Update - Trump's Silver Lining
Well you may have been forgiven for thinking it?s all bad news since Trump came to power but the Silver lining, little as it is, is that energy prices for the UK have dropped on account of the weakening Dollar.
Monday brought general increases on gas & electricity with other commodities being the main driver for this, gains were actually cushioned by increases in renewable generation
Revised weather forecasts for higher temperatures brought lower prices ! demand drop outweighed OPEC production cuts, Trump’s various protectionist stances on trades saw the dollar lose value which made oil effectively cheaper which then affected the rest of the market
The weather forecasts continued to show warmer temperatures for the UK & mainland Europe which reduced prices further
Again warmer weather is playing a factor in reducing prices, the falling dollar as well as strong supplies & stockpiles of oil despite OPEC’s recent cut actions have had a bearish effect on prices
As we find ourselves moving towards an Atlantic weather pattern, volatility in forecasting should stop, gas storage levels have dropped following a period of high withdrawals across UK, Germany, France, which has temporarily set a premium on coal prices, but this should dissipate away following the weather forecasts, future prices are still looking favourable