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Energy Prices (Mid November 2017)

Electricity:  

It has been reported that French hydropower reservoir levels have dropped to their lowest levels for the time of year since 2005. If this continues it could help drive French power prices higher, particularly if nuclear problems continue. French power workers are also planning to strike again on November 30th.

Marex Spectron’s meteorology desk predicts that “While more cold weather is expected in the coming days there is an increasing probability of milder and windier weather towards the end of November across western Europe, including the UK.” This could dent demand and boost supply resulting in pressure on prices.

Gas: 

According to pipeline operator Gassco an outage at an unnamed Norwegian gas field between November 17-23 will reduce Norwegian gas exports by 20 mcm/day. If unscheduled outages occur too this will further tighten supply.

The Oil and Gas Authority have confirmed in it’s latest report that the UK’s oil and gas reserves “remain at a significant level which could sustain production for at least the next 20 years.” Production could also be extended beyond this “if additional undeveloped resources can be matured,” it added.

Summary position: 

Oil $62.02barrel

Coal $83.45/MT

EUA 17 €7.50/TCO2

Gas 48.38p/th Apr 18

Gas 47.55p/th Oct 18

Electricity £47.25/MWh Apr 18

Electricity £45.95/MWh Oct 18