Energy Insight 2018 - Week 29

Your regular snapshot of the wholesale energy markets.

Week 28 was a volatile week of trading, with initial bullishness at the start of the week eroded in latter half. Prices continued their bullish momentum at the start of the week, based on further gains in oil and coal markets on Monday which saw API #2 coal prices for Cal-19 hit a new 5 year high. Strong import demand in China and weaker domestic production was the key driver for the gains in coal last week. Stronger demand for coal in Europe was also a factor, with many nuclear power stations running at lower capacity in Week 28, therefore calling on coal fired generation to make up the shortfall.

Sentiment was then changed on Wednesday, with an extreme bearish reaction to escalation in the US-China trade war. After $34bn of tariffs were introduced recently, it was confirmed that an additional $16bn then $200bn were outlined by the Trump administration late on Tuesday. The result seeing a $5.70/bbl. fall in Brent crude oil prices on Wednesday which marked the largest daily drop in oil in 2 years…



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