Energy Market Update

What's happening in the energy markets, and how might this affect your prices?

Gas prices increased 11% in September

  • Volatility was high in September due to several news stories that caused concerns in the market for the coming winter season. Reports about welding issues in French nuclear stations, in combination with a court decision restricting Russian flows to Europe through the OPAL pipeline, caused a sharp increase in gas prices.
  • During the month it was announced that the Netherlands' Groningen gas field output would halt eight years earlier than planned, initially increasing prices for future years, but the impact later dissipated as expectation for Groningen output was expected to decline over the years.
  • Healthy supply with increased expectations of liquified natural gas production helped prices ease from the highs reached in the middle of the month.

Electricity up 5% in September

  • In the middle of the month, EDF notified the nuclear safety authority that some components in various nuclear reactors had deviated from technical standards. This caused a huge price increase for all power contracts for future delivery. But later in the week, EDF stated they were confident in their reactors, which helped to relieve some of the concerns.
  • A second significant increase in prices was caused by the sharp rise in oil prices after the drone attack in Saudi Arabia's biggest facility.

Things to watch out for

  • Planned end to maintenance on major Norwegian gas pipeline, which could affect the market.
  • The Deadline for a Brexit extension is 19 October, otherwise the UK will leave the EU with or without a deal on 31 October.

To discuss your prices, and the best time to go to market with your contract renewals, contact us today!

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