Strong bullish sentiment captured the UK gas and electricity prompt and near curves during Week 8. Increased temperature risk for cold weather during Week 9 saw significant gains for the spot market during Week 8 as forecasts predicted conditions 4-6 degrees below seasonal average with high demand for both fuels anticipated.
Further premium was added due to expectations of low renewable output and no LNG cargoes arriving during the week. The bullish sentiment spread to the front month, with the revised forecasts showing the cold spell possibly lasting until at least the middle of March.
Most curve products followed suit, mainly driven by the prompt with the correlation between oil and gas and coal and power diminishing significantly in recent sessions.
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