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Energy Market Report – 18th May 2018

 Key Points:

  • UK Electricity prices witnessed limited activity , while the Natural Gas curve is trading down.
  • The EU is preparing a piece of legislation to protect European companies from the impact of US sanctions on Iran.

 UK Electricity Prices:

UK Electricity prices have witnessed limited activity this morning. Day Ahead is trading just above £56/MWh, while Month Ahead is at £55/MWh, up by 0.54%. The power generation mix is 50% from Nat Gas. Coal fired power stations are switched off again today.

Further out the curve, prices are starting to move up. While Win-18 is still trading around yesterday’s close, £61.29/MWh, Win-19 is 1.89% up and consolidating around £56.75/MWh.

UK Natural Gas Prices:

UK Natural Gas prices slipped this morning, despite oil markets trading higher. Day Ahead and Month Ahead are trading down about 0.7% and 0.07% respectively. The LNG tanker Vladimir Rusanov is expected to dock at Dragon bringing about 170,000 cubic meters of gas to the UK.

Seasonal contracts are also trading lower this morning. Win-18 and Sum-19 are down 0.16 and 0.1% respectively.

 Macroeconomics:

The BBC reported this morning that “The EU is to begin reviving legislation that will allow European companies to continue doing business with Iran, despite US sanctions.”