Losses have been recorded across the curve this week, with a number of bearish drivers weighing down on prices. Demand continues to be subdued with temperatures remaining above seasonal norms. Storage remains relatively full and LNG stocks are still high, adding to the healthy supply outlook. The Pound weakening against the Euro has prevented further losses. The December 2014 & Q1-2015 contracts are currently offered at 53.80 & 54.95p/therm, down 1.28 & 1.58p/therm respectively compared to the previous weeks close. Summer 2015 is currently offered at 51.15p/therm.
Big losses have been seen on the near curve this week, with weakness in the equivalent gas contracts continuing to be the main diver. The front month and quarter are currently offered at £49.49 & £47.58/MWh, shedding £1.84 & £1.99 over the course of this week. Smaller losses have been recorded on the far curve. The Summer & Winter 2015 have shed £0.85 & £0.63 compared to the previous weeks close and are currently offered at £47.20 & £52.30/MWh respectively.
The UK Government to launch emissions trading scheme in May and to introduce an environmental watchdog in July.
The UK Government has recently announced the date for the introduction of England’s post-Brexit environmental watchdog, which will be implemented on an interim basis in July.