Thursday 12 May 2011

All eyes on gas, while oil price drops

LNG was the focus of the energy market last week "with all eyes were on the prompt and on the gas", according to npower's latest market report.

Magali Hodgson, npower Optimisation Desk Manager said the gas price was tight: "UK gas flows were affected by an outage on the Norwegian platform and high export to the continent. But we had good LNG deliveries. So we saw a front month trading at a price range of 1p."

Oil prices were markedly down since a high of the week before though, she continued: "Brent became really bearish and started to be sold heavily. Front month Brent traded to a low of £105... a loss of $22 from its high of $127 the week before."

Ms Hodgson added that coal had also recorded losses in the last week, trading as low as $128.

Related story:

See our Market Report with Magali Hodgson on ELN TV