Brent Crude prices remained almost unchanged last week at $55.00/bbl, as yet more US rigs return to operation.

OPEC announced that global oil inventories fell by 24 million barrels in the last quarter of 2016.

Sterling rose nearly 1.5% reaching its highest value against the US dollar for a month, whilst the dollar lost value following President Trump’s inaugural speech.

Milder temperatures saw coal lose value last week down 5.5% to $64.50/tonne.

Gas prices eased off nearly 10% as the system was oversupplied.

Maintenance at several LNG terminals in Qatar will likely affect the flow of cargoes into the UK during February.

This could put pressure on UK gas storage now at record lows for this time of year. Much will depend upon the temperature for the next few weeks.

Power prices mirrored gas movements and day ahead electricity fell 10% last week.

Capacity Market auctions for winter 2017-2018 start on 31 January. At this stage, there does not appear to be a consensus on the likely outcomes.

The French Energy Regulator CRE has approved a further interconnector project for power between France and the UK despite the UK’s decision to leave the EU. This new interconnector is expected to be completed by 2020.

Article by Richard Clayton