Gas prices hit seven-year low – Y Report

The gas price fell this week to nearly 20p per therm as a result of healthy gas and LNG flows into the UK. This is a low not seen since 2009, according […]

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By Jonny Bairstow

The gas price fell this week to nearly 20p per therm as a result of healthy gas and LNG flows into the UK.

This is a low not seen since 2009, according to Inenco’s Y Report.

Electricity prices also fell but not as significantly.

The price of oil has fallen from about $50/bbl (£66.77/bbl) to nearly $46/bbl (£61.40/bbl), however tight forecast generation margins for the winter meant that impact of this on the power price was muted.

At the start of the week lower gas flows into the UK are expected due to maintenance.

 

Head of Energy Trading Stuart Lea said: “As we go through the week, gas flows are expected to increase and demand should decrease with improved temperatures. As we look further forward, at least in the short term, we should expect to see that the gas spot price remains low and therefore forward prices will remain low.

“The majority of fixed price contracts renew on the 1st of October. Taking into account any transfer of supplies that may be required, there isn’t long left in order to guarantee a deal that will be applied from the 1st of October.”