Oil prices have reached fresh monthly highs this week, according to Inenco’s Y report.

Saudi Arabia has said they are willing to discuss potentially stabilising prices going forward.

The gas system will be slightly oversupplied as Langeled flows have risen to around 45mcm. This may be balanced by higher gas fired generation and hot weather increasing air conditioning demand.

Gas and power prices have declined over recent days despite the recent rally in oil. This is likely due to increased flow from Norway and the UK’s inability to inject into long term storage.

Relatively strong wind generation has decreased demand for gas fired power generation. As oil continues to rise we might see gas prices follow.

Energy Trader Rebecca Hermolle said: “For customers with fixed price contracts you could look at placing your contracts now as winter is coming and we don’t know whether we are going to get the supply from the rough storage facility or how many wells are going to be online.

“For flexible customers you could look at increasing your hedges at this time and take advantage of the current lower prices compared to a couple of weeks ago, however the correlation between gas and oil has weakened over recent days. should that start to strengthen and oil continue to rise gas prices could follow oil higher.”