Brent crude oil prices slumped to their lowest in four years according to the daily market report from npower.
Speaking from the supplier’s trading floor in Swindon Ben Spry, Optimisation Desk Manager said: “Front-month Brent oil has hit a four-year-low just above $71 a barrel.”
This “bearish” mood on the markets comes after oil group OPEC decided not to cut its oil production.
Mr Spry said: “That’s certainly driven by Saudi Arabia looking to maintain their market share rather than increase prices by cutting production, [it’s a] pretty bearish story for oil there.”
This was having a knock-on effect on future gas prices this morning, he added.
There’s also a touch of “support” to short-term gas prices – i.e. keeping them up – as “cooler” temperatures are expected at the start of next week, on top of a short gas system today.
A similar pattern is emerging in the power markets, he said: “We’re starting to see prices lift in line with those supported gas prices”.