Energy Market Report April 2017
The Gas and power markets have continued their downward trend during March as the graph shows and prices have moved down from the peak seen at the end January by approximately 8p/th. We don’t know how much further prices will fall, if at all, and so it might be a good time to lock in contracts.
Temperatures have averaged over 1 degree (15%) above normal during March which has left the system very well supplied, and this has contributed to the downward pressure.
In addition to warm temperatures LNG levels have picked up with the UK receiving 8 vessels during March versus 6 in January and February combined.
The issues at Centrica’s Rough facility mentioned in last month’s article has left the system unable to inject gas. The injection season usually commences around this time of year. Though these issues could provide security of supply issues in the future for the short term the extra gas from a lack of injections has boosted supply availability.
Oil prices also saw large decreases over the past month as data suggested the US had stepped up production output and perhaps Saudi Arabia hadn’t quite reduced their output as suggested. This resulted in uncertainty to the downside on the agreement to curb output across OPEC members and Russia.
Milford Haven Port Authority