1. Weekly Energy Market Report 01st August 2018
This week has seen a slight drop in wholesale Gas prices due to the return of strong Norwegian flows generating an oversupply in the UK.
We have also seen higher than anticipated wind and solar outputs while UK demand stands well below seasonal average.
The continued high temperatures are pushing Power prices up however, with highs of 40C predicted in southern France toward the end of the week having a detrimental impact upon French nuclear production.
Demand for air cooling remains very high across continental Europe & the UK, driving prices steadily upwards at present.
Brent Crude is up to $74.52/bbl with Unite strikes in the North Sea, upcoming US sanctions on Iran and the curtailment of shipping through Bab al-Mandeb strait.
Things improved slightly today with higher than anticipated US inventories and cessation of Houthi groups in Yemen attacking oil tankers in the Red Sea.
Prediction for week ahead however still anticipate prices of between $72 - $77/bbl.
The Pound is largely static against the dollar at $1.31 this week as we await announcement tomorrow from the BoE regarding a possible rise in UK interest rates to 0.75%. The UK manufacturing industry looks to be slowing following the initial surge brought about by the initial Brexit-induced plunge in value of the £.
+2.2%
Electricity (£/MWh)
Summer Price
Winter Price
Average Price
58.65
61.20
59.93
-0.5%
Gas (p/Therm)
Summer Price
Winter Price
Average Price
57.65
61.90
59.78
PRICE MOVEMENTS
OVER PAST WEEK
Information provided are comments on the current market and are not advice. Murphy Young does not accept any liability in relation to any action taken based on the information provided. This information cannot be distributed without the consent of Murphy Young.