Global oil prices hitting a two-year low may end up affecting British gas prices, suggest analysts.
The markets have been “really flat” this week, according to the new weekly Y Report from Inenco, “largely because there’s been no real change to supply and demand fundamentals”.
Matthew Osborne, Risk Manager at Inenco explained: “Both seasonal contracts and shorter-dated contracts haven’t really moved, the impact on price has been relatively weak.”
But “really volatile” Brent oil prices – the international oil benchmark – means speculation is mounting that funding for shale gas may be affected, he added.
Mr Osborne said: “In fact it’s fallen to a low not seen in two years. The result of that is that many are beginning to speculate that actually shale gas projects that rely on a high oil price for their finance may begin to get into trouble.”
He added: “That hasn’t yet fed into the gas market but it is something that is potentially a concern on the horizon.”