Gas and power prices may fall – Y report

UK gas and power prices may fall in the coming weeks, according to the Y report from Inenco. Temperatures are forecast to be higher this week and maintenance works in […]

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By Jacqueline Echevarria

UK gas and power prices may fall in the coming weeks, according to the Y report from Inenco.

Temperatures are forecast to be higher this week and maintenance works in both the Norwegian and UK Continental Shelf may end soon.

Head of Energy Trading Stuart Lea said: “Power prices at the start of this week have started to push up and this is based on a poor short term wind forecast together with the ongoing nuclear maintenance. However the nuclear maintenance is due to end in coming weeks and months.”

Oil prices fell earlier this week due to the lack of agreement in cutting production at the OPEC meeting last weekend.

 

Mr Lea added: “This has already seen prices starting to fall away from the highs of last week. The price fall is now probably being limited by a strike in Kuwait which has seen oil production fall by about 6%.”

For customers who want to place contracts, it “may be the right thing to do to hold and give prices the chance to fall”, according to Mr Lea.

He added: “Whilst prices remain relatively low and do offer very good value to the buyer, the forecast do suggest that prices may fall further in coming weeks.”