March proved to be a volatile period for the UK gas and power as the official gas year came to a close.
Fears over a potential Brexit started to snowball at the start of the month, weakening the pound sterling V a basket of currencies. Rumours around future imports from the EU circulated and these supported slight gains in curve energy contracts.
Brent crude oil rallied to a four month high at $39/barrel on investor sentiment and reports suggested that OPEC had reached an agreement to freeze oil production in a heavily saturated market. However, increased Iranian exports, despite sanctions and high levels of storage in the US, ensuring that the brief rally was not sustained.
The release of the annual budget saw Britain's GDP forecast revised down by 2%, outweighing optimism that the European Central back may look to increase rates. In addition to the concerns around the economy of the EU, the Chinese economy continued to post data worse that what was expected and this kept energy prices in check.
Warm weather towards the end of March, coupled with an influx of LNG to the UK saw prices start to tail off, although technical buying provided some resistance to this.
As we head into the official British Summer period it looks like prices will remain subdued, with some experts predicting a global recession. Although the markets are currently at record low levels there is still plenty more downside for energy contracts across the board.