Market Updates

<< BACK TO MARKET UPDATES

Energy Market Report – 23rd April 2018

Daily Market Insight

Electricity:

Today is another day without coal. The UK National Grid announced that last week was a record long period of power generation without coal. the UK Transmission Network operator has an appetite to beat this record again.
However, a generation of power without coal has an impact on the cost of power production. The gap has to be compensated by a greater share of gas in a production mix. Rising gas prices, naturally push up prices of power.
This morning the prompt (Month Ahead) has been trading higher. The front season, Win-18 has taken a direction from the prompt and we have already seen prices rising, despite the trading window is scheduled to be opened at 10:30.

Nat Gas:

UK Natural Gas prices (the front month) have risen on the back of falling temperatures this morning, despite a healthy gas flow from Norway this morning. Some analysts are expecting the temperatures to be the main driver behind rising gas prices this week.  Further out the curve, seasonal contracts have witnessed low activities. Brent Crudes oil prices are trading lower this morning, and it is very likely that the UK gas curve is under the bearish sentiment from the oil curve.