UK Energy Pricing Trends - 20 Nov. 2020
20 Nov 2020
Power
Bullish market headwinds, fueled by the salience of several effective vaccines, began to unravel this week as short-term fundamentals guided sentiment. Falling gas pricing met a dose of reality regarding the timeline and logistical challenges of rolling out a successful vaccine, which dragged U.K. power pricing lower across the curve.
Natural Gas
In anticipation of higher winter gas demand, supplies of gas to the U.K. have climbed throughout November. A total of 13 LNG tankers are expected to berth in the U.K. before the end of the month, while Norwegian gas flows remained elevated at an average of 90 million cubic meters per day (mcm/d) throughout the week.
Energy Complex
Oil rose to its highest in nearly three months this week as a slew of vaccine updates spurred bullish market sentiment. A full recovery in the world’s demand for oil, although still a long-way off, is now reportedly achievable which, with the expectation of a 3-6 month extension to OPEC+ output cuts, saw global benchmarks note a third consecutive weekly gain.
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