Gas prices could continue to fall – Y report

Gas prices could continue to fall as the system is forecast to be oversupplied, according to Inenco’s Y report. However, with temperatures expected to be below seasonal normal levels from Thursday until […]

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By Jacqueline Echevarria

Gas prices could continue to fall as the system is forecast to be oversupplied, according to Inenco’s Y report.

However, with temperatures expected to be below seasonal normal levels from Thursday until the end of the month, prices have pushed up “a little bit”.

Stuart Lea, Head of Energy Trading said: “We should balance this by the fact that prices, despite this temperature forecast, have only pushed up a little bit and that the forecast for an oversupply of gas into the UK remains.”

Businesses trying to place fixed or flexible contracts should decide whether prices will continue to push up or decrease.

 

Customers on a flexible price contract should make their decision depending on the level of hedge they have in place.

Mr Lea added: “So for example if you’re really lowly hedged then for risk management you may decide now is the right time to put that hedge in place.

“If you’re on a fixed price contract, if you can’t risk the price going any higher than it is now then you should buy now. However, if you can take more risk and you are wanting to optimise price, then maybe you should hold and you’ll probably end up holding until quite close to the next contract renewal point.”