Prices fall as most had predicted but with mild weather on the way the fear is when will the next cold snap strike.
Power and Gas prices fell marginally on small volume, and milder weather predicted for the end of this week. However, the falls were guarded with a general feeling that the system will be able to cope if things are mild and outages do not occur. Moreover, those short gas have been dipping into storage and are aware that this will have to be used in future months, if Winter takes hold, therefore there will be significant buying pressure from those producers that need to push gas into storage as well as those on short term day ahead contracts.
Ofgem's recent warning shot aross the bows, will be closely looked at, but with unprecedented highs anyone who is naturally long is looking to sell into this sort of strength and this is perhaps why the market has not fallen as violently as some have predicted. Most concede that the market will fall but not as much as people hope, there are still alot of shorts out there.
25 January 2007
The market is responding to low demand plentiful supply with further falls. Summer 07 has not breached £25 but there is every chance it could. read more...
07 June 2006
The market has slipped on fundamentals which suggest that the slide could be here for some time, but there are still events in the pipeline which could force some things North. read more...
09 December 2005
Market falls on mild weather, settling of the gas market and the start of the Christmas season. Traders happy to react to the incumbent players. read more...
11 October 2005
Spark spreaders trading gas and power with small effect on the spread but influencing both markets quite dramatically with falls across the board. read more...
24 August 2005
Curve falls significantly, as the weather closes in there is a more bearish sentiment to price. read more...
Shale Gas - Latest UK estimates suggest enough for next 11 years
Cuadrilla Resources, the company at the forefront of Britain's Shale gas exploration released its first estimates of the amount of shale gas contained in the rocks of Lancashire. At 200 trillion cubic feet, the estimates are significant to say the least. read more...
22 September 2011
Cuadrilla Resources, the company at the forefront of Britain's Shale gas exploration released its first estimates of the amount of shale gas contained in the rocks of Lancashire. At 200 trillion cubic feet, the estimates are significant to say the least. read more...
Energy Forward Prices continue to gain ground
Despite market participants describing the market as stagnant and directionless, energy forward prices continue to gain ground. Winter 11 power closed the week up at £59.65/MWh while NBP Winter 11 gas finished at 72.20p/therm. read more...
10 June 2011
Despite market participants describing the market as stagnant and directionless, energy forward prices continue to gain ground. Winter 11 power closed the week up at £59.65/MWh while NBP Winter 11 gas finished at 72.20p/therm. read more...
Downward Trend Still in Play
Most contracts in the UK energy markets continued to lose ground this week enforcing the downward trend that has been in play since the start of the month. The Winter 11 contracts closed the week at £57.60MW/h and 68.85p/therm. read more...
13 May 2011
Most contracts in the UK energy markets continued to lose ground this week enforcing the downward trend that has been in play since the start of the month. The Winter 11 contracts closed the week at £57.60MW/h and 68.85p/therm. read more...
Winter 11 - A Slippery Slope
While March was a month of shocks and gains, April seems to have marked the start of a downward trend in the UK power market. The WInter 11 contract is just one example. read more...
06 May 2011
While March was a month of shocks and gains, April seems to have marked the start of a downward trend in the UK power market. The WInter 11 contract is just one example. read more...
The Market in April 2011
In comparison to the activity seen in March – the energy markets seemed relatively sedate shedding some of the value along the way. read more...
28 April 2011
In comparison to the activity seen in March – the energy markets seemed relatively sedate shedding some of the value along the way. read more...
Two Years On...
This week marked the 2nd Anniversary of the collapse of Lehman Brothers, perhaps the most significant collapse of the banking crisis. Ironic perhaps then that the anniversary coincided with the publication of stricter international banking rules requiring banks to hold larger cash reserves. How will these banking regulations impact energy companies? read more...
17 September 2010
This week marked the 2nd Anniversary of the collapse of Lehman Brothers, perhaps the most significant collapse of the banking crisis. Ironic perhaps then that the anniversary coincided with the publication of stricter international banking rules requiring banks to hold larger cash reserves. How will these banking regulations impact energy companies? read more...
Falling Wholesale Prices but what about the tariffs?
Even though the power wholesale market is following the falls seen in gas (Winter 09 Baseload closed the week down £0.20MWh at £38.70), and is now at levels where supplier tariffs must be under pressure, any tariff reduction announcements are unlikely to be made anytime soon. read more...
18 September 2009
Even though the power wholesale market is following the falls seen in gas (Winter 09 Baseload closed the week down £0.20MWh at £38.70), and is now at levels where supplier tariffs must be under pressure, any tariff reduction announcements are unlikely to be made anytime soon. read more...
Who will have the last laugh on the Green Agenda?
The Government’s announcement last week on the projected state of the UK energy industry is interesting and informative and demonstrates their willingness to impose a green agenda - but at what cost? read more...
24 July 2009
The Government’s announcement last week on the projected state of the UK energy industry is interesting and informative and demonstrates their willingness to impose a green agenda - but at what cost? read more...
Ofgem enquiry completed
Ofgem have completed their competition probe and not really delivered for business. read more...
18 March 2009
Ofgem have completed their competition probe and not really delivered for business. read more...
Imera secures new inter connector
Imera an Irish consortium has secured a good growth opportunity for 2011. read more...
07 December 2008
Imera an Irish consortium has secured a good growth opportunity for 2011. read more...
Warm weather weighs heavy on prices
Unseasonably warm weather and European debt crisis fears continued to influence the markets at the start of 2012. While oil did open the year up on the back of strong economic data from both the US and China, it retraced its steps on surprise US stockpile data combined with the Euro debt fears. read more...
06 January 2012
Unseasonably warm weather and European debt crisis fears continued to influence the markets at the start of 2012. While oil did open the year up on the back of strong economic data from both the US and China, it retraced its steps on surprise US stockpile data combined with the Euro debt fears. read more...
November 2011 Review
While debt repayment concerns combined with woeful economic indicators continued to be a feature throughout November, supply and demand fundamentals were an obvious driver too. Unseasonably warm weather combined with (and causing) plentiful gas storage meant that UK power and gas markets went into a nose dive. read more...
02 December 2011
While debt repayment concerns combined with woeful economic indicators continued to be a feature throughout November, supply and demand fundamentals were an obvious driver too. Unseasonably warm weather combined with (and causing) plentiful gas storage meant that UK power and gas markets went into a nose dive. read more...
Plunging Prices Impact UK Energy market
Oil markets were described as 'plunging' as fears escalated over the Greek debt crisis. With the dollar/euro exchange rates under pressure oil lost value pulling down NBP gas and UK power prices too. read more...
17 June 2011
Oil markets were described as 'plunging' as fears escalated over the Greek debt crisis. With the dollar/euro exchange rates under pressure oil lost value pulling down NBP gas and UK power prices too. read more...
Downward Trend Still in Play
Most contracts in the UK energy markets continued to lose ground this week enforcing the downward trend that has been in play since the start of the month. The Winter 11 contracts closed the week at £57.60MW/h and 68.85p/therm. read more...
13 May 2011
Most contracts in the UK energy markets continued to lose ground this week enforcing the downward trend that has been in play since the start of the month. The Winter 11 contracts closed the week at £57.60MW/h and 68.85p/therm. read more...
A Market Correction?
Losses were seen in the UK energy markets this week despite oil gains. This was the first sign that gas was decoupling from oil with suggestions in market implying that the recent gains had been ‘over done. read more...
08 April 2011
Losses were seen in the UK energy markets this week despite oil gains. This was the first sign that gas was decoupling from oil with suggestions in market implying that the recent gains had been ‘over done. read more...
Monthly Review - Jan 2012
Weather, oil sanctions and European debt concerns were the pushers and pullers this month as energy markets responded to competing indicators. Volatility was the only constant. read more...
01 February 2012
Weather, oil sanctions and European debt concerns were the pushers and pullers this month as energy markets responded to competing indicators. Volatility was the only constant. read more...
Weather Forecasts and Iranian Threats
Forecast and outturn cold weather drove gas and coal prices this week which in turn had an impact on the power curve. Iran threatened to cut off crude supplies ahead of the EU's proposed July sanctions; a move that would impact EU nations as they seek to find alternative sources ahead of the import ban. read more...
27 January 2012
Forecast and outturn cold weather drove gas and coal prices this week which in turn had an impact on the power curve. Iran threatened to cut off crude supplies ahead of the EU's proposed July sanctions; a move that would impact EU nations as they seek to find alternative sources ahead of the import ban. read more...
Warm weather weighs heavy on prices
Unseasonably warm weather and European debt crisis fears continued to influence the markets at the start of 2012. While oil did open the year up on the back of strong economic data from both the US and China, it retraced its steps on surprise US stockpile data combined with the Euro debt fears. read more...
06 January 2012
Unseasonably warm weather and European debt crisis fears continued to influence the markets at the start of 2012. While oil did open the year up on the back of strong economic data from both the US and China, it retraced its steps on surprise US stockpile data combined with the Euro debt fears. read more...
The Market in April 2011
In comparison to the activity seen in March – the energy markets seemed relatively sedate shedding some of the value along the way. read more...
28 April 2011
In comparison to the activity seen in March – the energy markets seemed relatively sedate shedding some of the value along the way. read more...
Confidence Returns to Market
Despite a continuation of cold conditions, confidence was seen returning to the market with a stabilisation of spot prices and comfortable system margins. There was some focus on the curve with seasonal contracts all reporting some gain on the previous weeks levels apart form Summer 13. read more...
20 December 2010
Despite a continuation of cold conditions, confidence was seen returning to the market with a stabilisation of spot prices and comfortable system margins. There was some focus on the curve with seasonal contracts all reporting some gain on the previous weeks levels apart form Summer 13. read more...
Monthly Review - Jan 2012
Weather, oil sanctions and European debt concerns were the pushers and pullers this month as energy markets responded to competing indicators. Volatility was the only constant. read more...
01 February 2012
Weather, oil sanctions and European debt concerns were the pushers and pullers this month as energy markets responded to competing indicators. Volatility was the only constant. read more...
October -What to Expect
October is a month to identify some good value purchasing opportunities. History suggests we will see prices slip through the month before the real winter drivers kick in. read more...
03 October 2011
October is a month to identify some good value purchasing opportunities. History suggests we will see prices slip through the month before the real winter drivers kick in. read more...
Energy Forward Prices continue to gain ground
Despite market participants describing the market as stagnant and directionless, energy forward prices continue to gain ground. Winter 11 power closed the week up at £59.65/MWh while NBP Winter 11 gas finished at 72.20p/therm. read more...
10 June 2011
Despite market participants describing the market as stagnant and directionless, energy forward prices continue to gain ground. Winter 11 power closed the week up at £59.65/MWh while NBP Winter 11 gas finished at 72.20p/therm. read more...
Confidence Returns to Market
Despite a continuation of cold conditions, confidence was seen returning to the market with a stabilisation of spot prices and comfortable system margins. There was some focus on the curve with seasonal contracts all reporting some gain on the previous weeks levels apart form Summer 13. read more...
20 December 2010
Despite a continuation of cold conditions, confidence was seen returning to the market with a stabilisation of spot prices and comfortable system margins. There was some focus on the curve with seasonal contracts all reporting some gain on the previous weeks levels apart form Summer 13. read more...
UK Gas price highest in World.
The UK gas price in Q409 is attracting significant volumes of LNG gas to the UK but there is real doubt as to whether these prices levels will be maintained. read more...
11 September 2009
The UK gas price in Q409 is attracting significant volumes of LNG gas to the UK but there is real doubt as to whether these prices levels will be maintained. read more...
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