A bearish week on the NBP has seen prices fall in every session. The system has been oversupplied as Norwegian imports reached their highest level since March and storage levels remain high for the time of year with Rough & Medium Range Storage still over 90% full. The Pound strengthening against the Euro and continuing weakness in the oil market also added to the bearish outlook. The Jan-15 (now the front month) and Q1-15 contracts are currently offered at 55.63 & 55.70p/therm, down 2.64 & 2.58p compared to the previous weeks close. Further out on the curve Summer & Winter 2015 have both shed 2.11p over the course of this week and are currently offered at 51.15 & 58.05p/therm. Day-ahead is currently offered at 55.80p/therm.
Losses have been recorded across the Power curve this week with weakness in the wider fuel complex weighing down on contracts. The Summer & Winter 2015 contracts are currently offered at £47.69 & £51.89/MWh, falling £1.02 & £1.37 over the course of this week. Bigger losses have been recorded on the nearer curve where the front month and quarter have shed £2.33 & £2.02. The contracts are currently offered at £47.30 & £47.20/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.