Energy Market Update
What's happening in the energy markets, and how might this affect your prices?
Gas prices down 5% in November
- UK gas prices fell in value during November, pushed lower by ample levels of supply.
- Apart from a few cold spells, weather conditions have remained relatively mild which has stopped demand from rising.
- Liquid natural gas supplies and Norwegian flows have continued to remain healthy, despite low prices, meaning there has been plenty of supply available.
Demand from gas storage hasn't been substantial, which has capped prices.
Electricity prices down 4% in November
- Electricity prices continued to fall in November, following the same trend as gas.
- Mild temperatures and good wind availability has meant there has been a healthy supply of wind-generated electricity, contributing to the general down trend in prices due to lower demand for fossil fuel-generated electricity.
Things to watch out for
- The weather will play a big part. As we're now in the winter season, weather is crucial for prices, as unexpected or prolonged cold spells can lead to an increase in prices as demand goes up and vice versa.
To discuss your prices, and the best time to go to market with your contract renewals, contact us today!