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News

LAST WEEK IN THE ENERGY MARKET – 11 March 16

Last week was another quiet week on the international energy markets. Oil continued to rally and peaked at over $41 a barrel as US production continued to fall. Another fall in US refined products provided evidence to show that stockpiles are starting to be affected. South American producers and OPEC members have agreed separate meetings to talk about curtailing production and supporting prices. Brent oil closed the week up 3 per cent at $40.05 a barrel. Capture1

The UK outlook

Short term prices rose in the UK as the gas system fell short of supply for a few days and the short-term weather outlook looked cooler. With low wind output and three nuclear stations suffering outages, the price of electricity also increased. Longer dated contracts changed only slightly over the week, apart from electricity prices in 2018, which dropped 2 per cent. Capture2

Advice to purchasers

Some volatility should not deter buyers at these levels. Especially those on long-term contracts. Forward gas prices have climbed 5-10 per cent from their mid-January levels, with electricity prices more or less matching that low. If you require any further advice on your purchasing strategy, please contact a member of the Utility Helpline team today. Call: 0800 043 0423.


Published by Utility Helpline on (modified )