Energy Market Update
A drop in prices this January could mean that now is a great time to lock in your next contract.
Gas prices down a further 12% in January
- UK gas prices continued to drop in January due to ample supply and mild weather across Europe, reducing demand for gas.
- Lower demand in Asia led to greater levels of Liquefied Natural Gas exported to Europe, helping to keep gas storage inventories across the continent at record highs.
Electricity prices down 11% in January
- Electricity prices increased at the start of the year in line with gas and oil prices but have since dropped due to unseasonably milder weather forecasts and stronger wind generation, resulting in lower heating demand and less reliance on fossil fuels in generation.
- Recent strikes in France led to lower nuclear generation, meaning they needed to import more energy to meet demand. This led to an increase in prices, but the impact was minimal on the UK market.
Things to watch out for
- Weather is crucial for prices as unexpected or prolonged cold spells can lead to an increase in prices and vice versa.
- Coronavirus impact spreading which might further roil financial markets leading to greater fears of a global economic slowdown.
To discuss your prices, and the best time to go to market with your contract renewals, contact us today!