Oil and Gas Markets
Brent crude futures finished the week by gaining 2.2% to $86.39 a barrel after Russia announced that it will be reducing oil production by 5% next month after the West implemented price caps on the country’s crude and fuel. Investors are not too concerned about a short-term supply deficit, as currently many refineries are in the middle of their maintenance schedule, so demand is dampened anyway. Equities, on the other hand, traded downwards at the end of last week as a growing number of central bank officials say a tight monetary policy will need some time to combat inflation, indicating sustained high interest rate levels
Gas & Power
UK gas and power markets experienced slight corrections at the end of last week, with front month gas and power futures gaining 2.3% and 2.1% respectively. Day ahead NBP also responded bullishly to news of an unplanned outage at Norwegian Troll, heavily decreasing flows coming through the Langeled pipeline. The gains were mitigated by mild temperatures curbing excess demand. In mainland Europe, TTF day ahead markets behaved similarly, trading bullishly as a result of the unplanned outage. On the other hand, the German power day ahead contract fell by 15.2% as generation was set to reach around 25.6 GWh/h, 53% higher than last Saturday.
How the market has opened each day:
DAY AHEAD PRICES | Gas (pence per therm) | Electric (£ per MWh) |
06/02/2023 | 152.00 | 172.50 |
07/02/2023 | 142.33 | 148.75 |
08/02/2023 | 137.00 | 143.50 |
09/02/2023 | 133.75 | 140.00 |
10/02/2023 | 139.00 | 148.50 |
13/02/2023 | 131.50 | 138.50 |
7 day averages
Gas (pence per therm) 139.26
Electric (£ per MWh) 148.63
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