Temperature will continue to drive power and gas prices in the short term, the latest market report suggests.
The latest temperature forecast shows the UK should remain “in and around seasonal norms for the next week or so”, according to Ben Spry, Optimisation Desk Manager at npower.
Last week however was a mixed week for Brent oil, he added. It was initially supported by the ongoing conflict in South Sudan and concerns around output from Libya. US economic data however pushed Brent oil down towards the end of the week, which saw it losing around $0.50/bbl.
The pound gained against the euro last week which was on the back of Italian unemployment hitting a 37-year high and the European Central Bank (ECB) announcing it would keep interest rates at a “record low” for an extensive period of time, Mr Spry said.
Looking forward, he adds: “With prices at recent lows, any cold spell that comes into the UK could see price premium come back into the market so keep an eye on that.
“While on the curve, keep an eye out for key US data releases this week which include retail sales and unemployment claims as well as the pound’s relative strength against the euro.”