Last week we saw a bit of an easement in short term prices. This was on the back of the gas system being pretty well balanced despite the fact that there was some issues over in Norway, but demand here in the UK being relatively low supported by some reasonable wind output which is continued through into the beginning of this week on the back of Hurricane Ophelia.
Further out alone the curve though we saw increases which will certainly be effecting prices from Spring onwards if not a little bit earlier. This has been driven by rising coal prices and also anxiety about the nuclear fleet which continued to throw up question marks about safety which is causing some jitters in the market.
On a positive note, the national grid have announced that they believe the gas system should remain comfortably in balance over the winter period which is good news for short term prices.
Looking forward we need to keep an eye on the French nuclear situation. Clearly as I said earlier on in this report that’s creating some anxiety and if there are further and ongoing problems with the nuclear fleet that’s bound to have a positive effect on prices going forward. And as ever we need to keep an eye on what’s going on in the far east. There are signs that demand is on the pick up again and that could drive the price of coal and oil and subsequently the rest of the energy mix.
If you’ve got any questions about this report and anything else that Auditel can offer then please don’t hesitate to contact us.