November 2016 through December 2016
November began with negative news that a major gas storage facility (Rough Storage) was going to see a delay in returning to action (not until Mid/End) -November which caused a spike in pricing
November began with negative news that a major gas storage facility (Rough Storage) was going to see a delay in returning to action (not until Mid/End) -November which caused a spike in pricing, renewed concerns on supply capacity in the UK & France saw electricity prices rise, normality of 2016’s pricing is forgotten at this point with a very poor outlook throughout winter, Summer 17 onwards is still looking healthy in the first week of November. Warmer temperatures are now showing on forecasts which causes gas prices to crash after a period of increases.
Oil prices jumped in Mid-November following OPEC members renewed efforts to strike a deal on production – there was still no agreement between the members & Russia. French Power is coming in at much better levels which effects our pricing, electricity & gas begin to drop back down to levels seen at the beginning of October.
Disagreement between OPEC members is causing further issues with pricing. Far curve electricity prices follow the gas & Brent movement which is reasonably stable, the near curve is down following French prices dropping. News from our Brexit secretary, David Davis, brought better pricing as he claimed that the UK could pay for access to the single market. OPEC decides to reduce crude output – another meeting is scheduled for December 10th, the Pound makes gains on the Euro, the market balances out.
On the 10th the largest cut ever by non-OPEC members was announced which caused increases in oil prices, Brent prices are at an 18-month high by the 13th of December, gas & electricity begin to mirror this activity.
Days of quiet trading followed a long period of volatility leading towards Christmas.
Shortly after this an emergency meeting regarding the gas production field at Groningen could possibly lead to a production cut or a complete halt to production, this meeting is scheduled for the first week in January. Prices are now moving back upwards due to bullish gas prices & news of further issues with Rough Storage. The market closes for Christmas.