YOUR WEEKLY ENERGY MARKET REPORT Welcome back to those who have been following our weekly report and welcome to all new visitors. To follow us and to read the detailed weekly report on energy intelligence click here
This week’s market reports show us how a mixture of varied movements was seen across UK gas and electricity price curves in last Thursday’s session, ahead of the long Easter weekend. Strong pipeline flows from Norway and via LNG injection into the system ensured that the system was slightly oversupplied from open to market close. Additionally, the short-term LNG outlook remains positive, with 10 LNG vessels scheduled to arrive in the UK before the end of April.
UK and European weather forecasts remained consistent with previous predictions, showing warmer weekend climes over the Easter period and cooler forecasts heading further into the week, furthering the bearish pressures on gas near-curve market caused by slowing industrial energy demand.
Ahead of the much-heralded OPEC meeting over the Easter weekend, commodity markets held their breath to see how any proposed output cuts would affect Brent Crude Oil prices. Consequently, gas and electricity price movements further along the curve remained somewhat muted.
The anticipated agreement on production cuts was agreed, however a sharp rise in Brent Crude was not forthcoming as the record supply cut was not ample in easing concerns regarding the market’s persistent oversupply and the bearish impacts of COVID-19’s continuing spread.
With the lockdown period for the UK expected to be extended after other European countries announced an extension, it is unknown how long the situation with COVID-19 will last.