Good time to place fixed price contracts – Y report

Customers looking to place fixed price contracts should do it now. That’s because gas and power prices are currently lower compared to the same period last year, according to Inenco’s […]

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By Jacqueline Echevarria

Customers looking to place fixed price contracts should do it now.

That’s because gas and power prices are currently lower compared to the same period last year, according to Inenco’s Y report.

Customers could “take advantage of a year-on-year benefit”, said Energy Trader Rebecca Hermolle.

She added: “For those customers with flexible contracts if you’ve got a relatively low hedge, you could increase your hedge levels and lessen the impact of the current volatility with prices. If you’ve got a high hedge, I’d sit on your hands and see if contracts out-turn lower closer to delivery.”

 

On the gas system, there are currently maintenance works in the Norwegian continental shelf which are driving prices.

Ms Hermolle said: “Prices rallied following the start of the Norwegian maintenance and they’ve continued to move higher earlier this week. This is likely due to the fact that flows through the Langeled pipeline from Norway have been restricted due to this maintenance.”

Maintenance is expected to finish at the end of the week.

Oil prices are trading below $50/bbl (£34/bbl).