Professional Energy Purchasing

Market Update

There has been a sharp rise in near curve gas and power prices overnight, with the August 2016 gas price gaining 1p/therm and the power price gaining £0.78/MWh.

The increase in prices is caused by the following factors:

• Anticipated decrease in LNG Imports: Less LNG is expected to arrive in Britain in the next 2 months, resulting from a recent increase in the LNG price relative to the NBP, making the commodity less attractive for purchase. This reduces the short term supply outlook and results in a higher market price.
• Rough gas storage closure: The market is still volatile following the unexpected temporary closure of the Rough Natural Gas Storage Facility, which supplies up to 10% of the UK’s peak demand for gas, until the end of Q1 2017.

This information was published courtesy of EON.

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