Fixed price contracts should be placed over three year period – Y report

Customers looking to place fixed price contracts should do it over a two to three-year period, according to Inenco’s Y report. That’s because the premium bill into seasonal contracts are […]

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By Jacqueline Echevarria

Customers looking to place fixed price contracts should do it over a two to three-year period, according to Inenco’s Y report.

That’s because the premium bill into seasonal contracts are low.

Dorian Lucas, Energy Trader said: “That would gain a great value over a three-year contract.”

 

For customers with flexible contracts a surge of LNG in the last quarter of this year and the second quarter of 2016 could reduce gas prices further, he added.

According to Mr Lucas, customers with low hedges should “continue to sit on their hands and wait for this market to fall”.

He added: “Those customers with relatively high hedges should potentially look at a pullback in the market and an opportune place to unlock.”