It was a very mild autumn looking back, but it’s fair to say this winter has had its moments so far. Will are still amid the latest cold spell, which as endured for just over a week, with particularly cold mornings.
After down trending for a good while, the cold spell has ‘stopped the drop’ so to speak, with prices trending slightly higher or now holding its value for a couple weeks. We could see a reversal back to the downtrend when we exit this cold spell, or this could be a sign we are at a resistance point in the market.
Storage withdrawals have been heavier as mentioned. Levels will have no doubt taken a hit come next week. However for the UK at least, plenty of LNG is being delivered to keep the markets calm amid some planned outages on Norway’s infrastructure and lowered nominations through Langeled.
Day ahead markets are trading higher than the front curve currently on gas, which we have not often seen in the past few months. Oil is enjoying a mini rally, with China’s easing of Covid-19 restrictions providing bullish news for the commodity. Some fears lie in the markets that China could see an increase in demand for LNG over 2023 with its return to normal operation and is one to keep an eye on as more data is gathered.
How the market has opened each day:
DAY AHEAD PRICES | Gas (pence per therm) | Electric (£ per MWh) |
16/01/2023 | 160.00 | 165.00 |
17/01/2023 | 152.00 | 136.00 |
18/01/2023 | 158.50 | 150.00 |
19/01/2023 | 155.00 | 163.00 |
20/01/2023 | 177.00 | 177.00 |
23/01/2023 | 174.00 | 180.95 |
7 day averages
Electric (£ per MWh) 162.08
Gas (pence per therm) 159.58
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