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Energy Prices (Mid December 2017)


With recent strikes reducing French power capacity by up to 8 GW, France’s largest energy union has announced that further strikes are planned over the Christmas period and into January. This may result in capacity reductions, which in turn could increase export demand for UK power.

According to analysts at Commerzbank, Coal prices are likely to come under pressure in the first half of next year in the face of a “structural shift” in demand and increasing domestic production in China, and greater output from Australia, Colombia and Russia.


If Asian prices continue to rise cargoes will continue to be lured eastwards and away from the UK and Europe, Asian LNG prices have risen to 3-year highs – official figures show average prices into Japan, the world’s biggest buyer, reached $9/mmBtu in November (equivalent to over 68 p/th).

The first Russian LNG is expected to land in the UK in the coming weeks after a UK-based company has bought one of the first cargoes to come out of Russia’s new Yamal LNG project. Reports suggest the cargo may be headed for the Isle of Grain LNG terminal in Kent, but a drop in gas prices over the last few days may mean the cargo is diverted.

Summary position: 

Oil $62.84barrel

Coal $89.85/MT

EUA 17 €7.16/TCO2

Gas 48.43p/th Apr 18

Gas 47.03p/th Oct 18

Electricity £46.95/MWh Apr 18

Electricity £45.05/MWh Oct 18