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Energy Market Bulletin

Issue 11/06


Alex McGregor Analyst

The majority of gas and power contracts up to, and including, winter 18 trended downwards last week. This was driven by an improved supply outlook and a reduction in oil prices. Day-ahead gas prices dropped 0.7% week-on-week to 57.6p/th. The week started with rising prices as the system was undersupplied with lower wind output leading to an increase in gas demand for electricity generation. Despite rising gas demand forecasts through to Thursday, prices dropped as temperatures rose towards the end of the week causing lower demand than expected. Day-ahead power prices closely followed its gas counterpart down, falling 0.2% to £56.2/MWh ...

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