Market Insight and News
December saw upward movement in the energy markets as we saw a shift in seasonality and lower temperatures started to take hold. However, initially milder than expected, temperatures at the beginning of the month helped ease supply and demand issues and saw some significant decreases on both Day-Ahead markets as well as on the future curve.
UK Baseload Day-Ahead prices saw a 47% drop in the first week with strong renewable output and lower cost wind generation, however as the week progressed wind generation lowered which in turn pushed prices back up. As the month progressed we saw prices start to creep up back towards where they began the month as colder temperatures continued to dominate the wholesale market. Seasonality coupled with unplanned outages further pushed NBP prices upwards, however, UK Baseload power prompt prices continued to fall through the middle of December amid the milder temperatures and renewable output easing supply and demand issues.
Current Oil Prices
|ICE Brent||Jan-17||55.44 $/bbl|
|ICE Gasoil||Sept-16||487.25 $/tonne|
Utility News Highlights:
- Tata Power commissions green projects in India
- National Grid spared from being broken up
- Taxpayers could pay £24bn for closing oil rigs
- The US could become net exporter by 2026
- BP signs link with Thai oil and gas firm