Gas and power prices currently low – Y Report
Gas and power prices both started to fall on Thursday and continued as we entered this week, according to Inenco’s Y report.
A fortnight of scheduled maintenance on the European gas interconnector means excess gas is trapped in the UK, which will continue to push prices down even further.
Energy Trader Stuart Lea said prices are therefore likely to remain low for the short term but it is important to remember they are generally in an uptrend at the moment.
He adds: “The downside potential is probably going to be far outweighed than the outside risk and this might be the point when you increase hedges or place the contract.
“However, if you do want to continue taking risk and sending volume to the spot market then the fundamental outlook does continue to support this decision too.”
Last week oil and gas prices rose, even surpassing previous highs.
This was due to oil price increasing to $53 (£37.56) per barrel and gas flows from Norway into the UK being reduced due to routine maintenance.