Businesses should place fixed price contracts now, according to Inenco’s Y report.
Energy trader Kayleigh Winstanley said: “Clients with fixed price contracts for October 15 need to start thinking about placing those contracts now in order to achieve any transfer deadline that is implied.”
Customers with flexible contracts and low hedges have a “good opportunity” to start hedging away and take some cover, Ms Winstanley added.
She said: “Customers with flexible contracts, if you’ve got a high hedge in place I would hold. The downward trend remains intact and there is certainly scope to take that remaining exposure for October, at least into the delivery period whilst the LNG schedule looks so comfortable.”
Contracts close to delivery have recovered most of the gains made last week, according to Ms Winstanley.
She added although seasonal contracts have posted some losses they are still at a premium to those previous losses.
Ms Winstanley said: “But if we see a further correction, so downward movement in oil prices and also the fundamental outlook remain as it is, relatively comfortable, we could see further losses.”