It was a “lacklustre” week for power and gas last week despite Brent crude oil prices hitting a nine month high of more than $119 per barrel, according to a weekly market report.
Demand for gas and power rose as a result of “yet another cold spell” which saw temperatures dipping below seasonal norms, according to energy supplier npower’s experts.
Ben Spry, Client Portfolio Manager at npower’s Optimisation Desk said: “It was a lacklustre week for the power and gas seasons, which continued to be range-bound and keep within their recent narrow trading range.
“This was in spite of a particularly bullish week for other fuels, particularly oil and coal. Carbon also gained value in the week but this was not enough to prevent the front three seasons finishing slightly lower,” he added.
The nine-month high prices for Brent crude oil can be put down to an “ever strengthening euro” versus the US dollar, on top of “simmering” middle-eastern tensions.
Pay strikes in coal mining heavyweight Colombia affected 85% of its output, pushing coal to an eight-week high with prices kept above $100 per tonne.
Looking ahead political uncertainty around Spain and Italy still weighs on Eurozone sentiment which Mr Spry suggested “should keep a lid on prices in the short-term”. However he added “oil-strength is likely to “battle it out” with Eurozone concerns.