Winter gas prices cheap – Y report

Gas prices for winter 2015 are cheap, according to Inenco’s Y report. Stuart Lea, Head of Energy Trading said: “The impact of high supply versus demand has led to continued […]

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By Jacqueline Echevarria

Gas prices for winter 2015 are cheap, according to Inenco’s Y report.

Stuart Lea, Head of Energy Trading said: “The impact of high supply versus demand has led to continued low spot price. The spot prices are hugely co-related to the forward price and so prices have continued to fall on the forward markets. Indeed at the start of this week prices have set a new time contract low for these periods so for winter 2015 and beyond prices have never been as cheap.”

 

Customers in a flexible price contract with low hedges should consider hedging before winter, said Mr Lea.

He added: “If you have a higher hedge in place then you may continue to hold to see if prices fall even further.”

Those customers in a fixed price contract should consider placing contracts for 2016 and beyond as “prices are so low at the moment” for those years, said Mr Lea.