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Energy Prices (mid May 2015)

Mid May 2015


Electricity:  The UK supply margin is expected to fall to the lowest ever level this summer as the summer maintenance programs for several large power stations hit their peak

Restrictions on coal imports in to China will be introduced in July, this may further reduce demand for imports in China, applying pressure on global coal prices. Chinese coal demand fell aby 8% year-on-year in the first four months of 2015.

Gas: The Ormen Lange field in Norway is to shut down for annual maintenance, adding to the pressure from other ongoing outages in Norway and other smaller fields and infrastructure. This may tighten up supplies and increase short term prices.

The impacts of the oil slump on gas prices are likely to be strongest in the next few weeks as the $46/barrel low from January feeds in to contracts, as there is a lead in time of around six months. the may push buyers to maximise contractual benefits and minimise wholesale buying.

Summary position:

Oil $66.51barrel

Coal $58.20/MT

EUA 14 €7.63/TCO2

Gas 46.95p/th Oct 15

Gas 47.85p/th Apr 16

Electricity £44.68/MWh Oct 15


Electricity £45.25/MWh Apr 16