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UK prices - The table and graph below shows the forward annual gas and electricity pricing. Last week brought more swings in a market that calmed down following turbulence in the previous week. The diplomatic dispute between Qatar and several neighbouring countries showed no immediate threat to supplies, although two week UK LNG shipments appear to have been re-routed through Africa. Oil continued its recent fall after more evidence showed that OPEC's cuts are unlikely to remove global stocks this year. Brent closed the week down 2.7% at $47.37 barrel.

In the UK, prices fell as Qatari premiums came out and the gas system was long for most of the week. A return to normal supply following summer maintenance at many Norwegian gas assets ensured good UK volume. With no export to the continent and Rough storage unavailable, UK gas prices were pushed down as the warm weather also reduced demand. Wholesale electricity prices also tracked down, but not as much as gas because lower wind forecasts pinned prices slightly. Markets fell back last week as risk came out with all contracts dropping but gas more than electricity. The Qatar situation could still have an impact on the UK and uncertainty abounds from the election results and the start of Brexit negotiations. Volatility is likely to continue and could increase over the coming months, but there should also be some short term opportunities as the gas market moves with summer conditions and in the absence of any major storage outlet.