Gas prices are rising despite an oversupplied system, according to Inenco’s Y Report.
This may be due to long-term concerns regarding the lack of planned LNG deliveries into the UK and issues at the Rough and Groningen facilities.
Oil has also pushed up from $46/bbl (£36/bbl) at the start of the week to around $50/bbl (£39/bbl) following proposed production cuts by OPEC.
An explosion in a Chinese mine added further to the increasing coal price.
“Given the bullish picture in the gas and electricity markets at the moment, if you are on a flex deal then it would be prudent to be carrying high hedge levels. If prices do fall in the future you can always unlock. If you’re on a fixed price deal the majority of those renewed on the 1st October. If you have not yet placed your deal you should do so as soon as you can to avoid the possibility that out-of-contract rates may be applied.”