Professional Energy Purchasing

Market Update

Following price slides the market is concerned that gas supply production may be cut to prevent prices sliding even further. With recent falls, market participants will probably look to cover any short positions. The UK gas system opened undersupplied this morning as imports from Netherlands dropped and domestic demand increased. Tomorrow and over the weekend temperatures are set to fall below normal, but should increase from Thursday next week. This upward momentum  along with potential lower supplies may have filtered through  to the monthly contract prices.

Power prices would have outpaced gains made on gas prices, as carbon prices rebounded after the previous session losses, signalling that the carbon market is not downward trended. Both these impact the cost of generation and power prices have increased to reflect this.

Brent crude is trading down and the GBP has maintained its strength against the EUR which are both downward signs for longer dated gas prices. If this continues there may be some downward pressure on seasonal contracts beyond winter 14 throughout the day.

Energy Efficiency & Procurement Consultants