Brent crude prices remained stable last week at around $55.00 /bbl.
The return of a large number of US rigs heralds the prospect of an increase in US output which will go some way to counterbalance the production cuts by OPEC and non OPEC producers.
US oil production has risen 6% in the last six months whilst global oil producers recorded that 1.5 million of the forecast 1.8 million bpd reduction had been achieved.
Coal prices continued to rise with an increase of just over 1.4% last week largely because of increased imports by China.
The pound Sterling strengthened last week following the Prime Minister’s speech giving a slightly more detailed plan for Brexit.
Prompt gas prices rose over 4% on the news of colder weather and a fall in wind generation prompting higher demand for gas used in power generation. One LNG cargo is scheduled to arrive into the UK in the final week of January.
Power prices eased down last weekend the generating capacity margins for the rest of winter appeared to be more comfortable than originally anticipated.
Article by: Richard Clayton