January 2017

A further decline in the pound’s strength saw gas prices increase, the latest weather models showing cooler temperatures, OPEC & non-OPEC producers agreement to cut production begins on the 1st of January which increases prices marginally (coupled with a nuclear plant outage).

A Dutch Court will give a ruling regarding requirements to limit or stop production at Europe’s largest gas field (and 10th largest in the world) due to an increased risk in earthquakes & tremors (amongst other things) the field accounts for 50% of the natural gas production in the Netherlands and exports to the rest of Europe – this causes a spike in pricing before the result, the result was that a cap was put in place but it wasn’t as high as expected.

With nothing to bring down prices, oil – gas & electricity are showing marginal increases.

News comes in on Monday that warmer forecasts are set for the end of January 2017 for the UK & mainland Europe, prices come off accordingly despite a few minor factors such as renewable generation being slightly lower than it has been.

Weather forecasts are changing so frequently that the forward picture is changing daily, whilst we do expect prices to recover in April 2017 based on predictions, a major change in the industry could yet again cause gains.