Businesses on fixed price contracts should ‘get ready to buy’, according to this week’s Y report by Inenco.
Kayleigh Winstanley, Energy Trader at Inenco however added “prices are still falling so I wouldn’t pull the trigger just yet – but definitely get in a position to do so.”
She went on to say those on flexible contracts should hold and “see how low this market really can go”.
The system is pretty comfortable in the UK this week. Ms Winstanley said: “We have seen an end to the Norwegian maintenance, which reduced flows last week.
“Also Rough [storage facility] is offline unexpectedly for maintenance.”
This has meant the demand forecast for the UK is lower than originally anticipated.
Wind generation is up and temperatures remain around seasonal normal levels.
Ms Winstanley added: “Contracts across the board have fallen, many surpassing previous lows.
“Oil is a big driver here, OPEC [Organisation of the Petroleum Exporting Countries] is seemingly unwilling to address the oversupply that’s in the market and now that the sanctions have been lifted against Iran, their export capabilities are starting to increase.”