Back to News

Energy Market Report July 2017

UK gas prices declined during June, front month (July) settling down slightly over 1%, while day ahead prices briefly reached as low as 25p as the IUK interconnector entered its annual maintenance period.

Prices recovered toward the end of the month amid persistently high temperatures to trade at mid to high 30s.

Centrica Storage Limited announced their intention to permanently close the Rough storage facility, which has experienced ongoing issues in recent years, subject to regulatory approval. Rough represented around 70% of UK gas storage capacity, and up to 10% of peak winter supply.

This means that in winter the UK will be more reliant on gas imports via European & Norwegian pipelines, and LNG from the global markets.

In contrast power prices were relatively robust, with warm temperatures and low hydro storage on the continent.

Oil prices fell as the market remains unconvinced about the effectiveness of OPEC-led production cuts to tighten global supplies.

July to date has seen a similar dynamic as warm temperatures persist, while the immediate loss of summer demand on the system from the storage facility’s now non-existent injections has resulted in very high exports across the interconnectors to Europe since the IUK returned to service at the end of June.


ICE, Bloomberg, Interconnector, Centrica Storage Limited

Corona Energy Editor