Energy Update for 13th February 2017
This week’s report will cover the period from the 30th of January until today, the 13th of Feb. In the week commencing the 30th of January, prices rose primarily on the back of an under supplied gas system, partly supported by maintenance at the gas storage, and also a weak pound helps drive prices upwards.
As the new week started in the 6th of February, prices fell off. Despite the unsuspected cold weather later on in the week, prices fell in the back of increased imports from Belgium and also due to a strengthening pound. Increased wind generation also helped ease the pressure on the system until Thursday when, finally, the cold weather took hold and prices began to pick up. However, the rally was short lived. Prices began to fall again on Friday as a result of the anticipated warmer weather coming in for the remainder of February.
Looking forward, we can still anticipate weather to be a key driver of prices due to its impact on heating demand whilst we still sit within the winter period. Further out on the curve, we can anticipate currency fluctuations and oil prices continue to play the part, particularly if the cap on oil production bites and oil prices continue to rise as they have done for the past six months or so.
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