Small Business Market Update
Tuesday 13th March 2018
What has happened to Gas prices today?
Prices remain volatile this week on the UK Gas market following the record highs last week.
Prices eased following the Beast from the East and prices returned to some form of normality. Demand returned to seasonal normal and the UK remained relatively well supplied.
On Monday 12th March, there was a significantly colder weather revision in the market models predicting another unseasonably cold spell from Saturday 17th March onwards with temperatures expected to sit below 0 C again. Front month April-18 lifted 5p/therm within the first hour of trading on Monday.
UK Storage levels are low and the UK turned to net injections this morning compared to 34mcm withdrawals on Friday. Periods of unexpected outages last week helped to lift the market.
Today prices have eased as US Oil production has continued to increase following an EIA report with results set to be finalised and published on Wednesday afternoon.
What specifically affected prices in the past week?
Bullish Factors (Upward Pressure)
- The ‘Beast from the East’ Round two
- Colder weather forecasts
- Number of Unplanned Infrastructure Outages
- UK Storage Levels
Bearish Factors (Downward Pressure)
- Weaker Brent Crude