Professional Energy Purchasing

Market Update

Prices from last week’s report have declined slightly, with some choppy periods as factors push prices up. Last week, flows from Norway had decreased following drops in flows from Langeled and an outage at Kvitebjørn. Oil prices also rose following an unplanned production outage in the North Sea and geopolitical tensions surrounding Libya, Syria and the US. These factors saw increases throughout the week. Increasing LNG levels and a well-supplied UK system have been the main driver for the steady decline in NBP prices. As temperatures return to around seasonal normal, this is having minimal effect on the curve.

Gas prices this morning have reduced. The UK has a long system, Langeled is beginning to return to normal levels and LNG levels are increasing for April, creating healthy supply for the UK and weighing on prices. Temperatures are remaining on or around seasonal norm for the coming week, however wind generation levels are set to increase and push prices down, following breezy forecasts.

What specifically affected prices?

Upwards Movement
Low Norwegian flows – Langeled flows at around 45, outage at Kvitebjørn.
Temperatures returning to on or around seasonal normal levels.
Rising Oil prices – Unplanned production outage in the North Sea, US conducting airstrikes in Syria, supply disruption in Libya.

Downwards Movement
Increasing LNG arrivals – 3 LNG tankers to arrive at South Hook before April 14th.
Well supplied UK system.

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