UK NBP prompt prices began in week in a strong fashion as temperature began to fall below seasonal normal demand. These increases were further affected by upward movements on the crude oil contracts, and the recent announcement from the Dutch government that further cuts could be made to gas field production at Groningen. These further cuts would increase pressure on the system which in turn pushed gas prices upwards. With crude oil also on the move these forecasts indicate UK NBP prices are in for a volatile few months.
As expected in line with these increases both prompt and curve UK Baseload prices saw some sharp increases over the week. Wholesale power prices were also affected by lower forecasts of production and maintenance on the IFA interconnector. Through the week demand started to increase on the back of lower temperatures, and the lower wind production put further pressure on the system.
Market Data Source (ICE, Argus)
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