Energy Market Update
What's happening in the energy markets, and how might this affect your prices?
Gas prices increased 7% in August
• Maintenance in several Norwegian plants during the month disrupted supply to the UK, but lower exports to the Continent and weaker demand offset some of that impact.
• During the month, gas prices saw a few short-lived spikes amid expectations of a drop in supply due to unplanned outages.
Electricity up 1% in August
• Pipeline outages reduced gas supply, which drove up gas prices. This in turn drove up the electricity prices.
• Wind speeds in August were less than forecast, which reduced wind generation. This is a cheaper source of electricity supply than gas or coal, so meant a slight rise in prices.
Things to watch out for
• Planned maintenance on major Norwegian gas pipeline.
• The result if legislation to stop a no deal Brexit passes, or if MPs call for a snap general election.
• Several nuclear power plants are expected to return to production in September, reducing demand on supply.
• A few more liquified natural gas cargos are expected before winter.
To discuss your prices, and the best time to go to market with your contract renewals, contact us today!