Oil is continuing to drive prices for gas and power contracts further out.

That’s according to the latest Y report from Inenco.

Energy Trader Rebecca Hermolle said: “Prices crept higher over recent days due to volatility in Brent crude oil however they’ve not broken out of long term downtrend. We expect further volatility going forward due to the colder temperatures, lower renewable generation and the volatility in Brent crude oil.”

However she added the wait is ongoing for price signals for the longer term direction of the markets going forward.

Ms Hermolle said customers on both fixed-price and flexible contracts “could look at holding during this short term period of price volatility and they could wait for further price signals regarding the longer term trend of the market”.

Demand for gas and power for heating has increased this week as temperatures have dropped to below seasonal normal levels.