Power
- The curve fell after the Easter holidays as warmer weather moved in, the UK saw record renewable generations (3 straight days without coal).
- The market turned bullish on the back of tension in the Middle East, wind and solar dropped off and gas picked up the generation slack.
Gas
- Higher temperatures reduced the reliance on gas for electricity generation, bringing the prices down.
- Low storage levels coming out of winter and a number of unplanned outages all supported pricing.
- 9 LNG tankers arrived during April due to a decrease in Far Eastern demand.
Underlying Fuels
- Oil has moved from $69/bbl to $75/bbl, driven by the trade war between China and the US, and security of supply issues following the Syrian Airstrikes and the US stance on the Iranian deal.
- The £ fell during April off the back of poor economic data and moments of strength from the Euro.
Renewables
- Information from EAC Committee in May highlighted funds going into renewable energy. The mainstay of the low-carbon economy fell more than 50% in 2017, having dropped by 10% in 2016, bringing annual investment in the sector to its lowest since the financial crisis in 2008.
- Britain’s windfarms provided more electricity than its eight nuclear power stations in the first three months of 2018. This marked the first time wind has overtaken nuclear across a quarter. Across the first quarter, wind power produced 18.8% of electricity, second only to gas, said a report by researchers at Imperial College London.
For further discussions about the markets and to discuss strategies, please contact Adam Throup, [email protected].
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