The Conservative Party going back to Downing Street means “business as usual” for the energy market.
That’s the view of Matt Osborne, Risk Manager at Inenco, who told ELN: “It means a lot more stability and clarity in terms of investment going forward. It means prices should remain at least pretty stable, if not slightly bearish on the back of market fundamentals. So all of that is relatively comfortable for the market.”
He believes the Tories are “pro-business” and the party “looks like the best option” for firms.
For those making any buying decisions, Mr Osborne said “nothing too fundamental has changed”.
“You still need to be looking at the market dynamics in the wider context so you still need to be looking at where wholesale prices are being influenced by market fundamentals. From that fundamental basis, we’re still pretty comfortable. We’ve still got lots of gas coming into the market from LNG so going forward we still see some bearish pressure,” he added.
However he suggests businesses to be cautious for the winter.
“There’s still a risk for winter prices to push slightly higher because we have some issues with storage capacity being reduced as well as potential imports from Holland being reduced as well. But overall the context looks relatively comfortable,” Mr Osborne said.