EU summit agreement spurs energy price gains
This information is an extract from our July newsletter Energy Brief. Fill in the form on our home page to have your copy delivered free to your inbox each month.
Despite extending recent price losses in the third week of June, prices across the UK power and gas markets rebounded at the end of the month.
Price gains across the seasons and Annuals were helped by a rally in oil and financial markets, as the EU summit ended on June 29th with an agreement to support the banking sector and a EUR 120 billion programme to promote growth.
In the electricity market, the October ’12 Annual, which had dropped as low as £46.3/MWh, was pulled up to almost £48/MWh, as a result. In gas, the October ’12 Annual prices gained almost 3% on June 29th and oil prices surged by more than 4.2% .
Coal prices have also recovered, with 2013 values nudging $99/tonne, more in response to gains on other adjacent energy markets than any change in the fundamental coal supply and demand picture, as a global glut persists.
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