Energy and Utility Management Consultants

Fall in Wholesale Prices Slows

May 2012

 

Following sustained drops in the wholesale prices of natural gas, electricity and Brent crude oil, the start of this week has seen a small upward movement despite the warm weather being forecast well into next week with temperatures expected to hit 25ºc in some parts of the UK. While this will reduce gas demand required for heating, it is likely to increase power required for air conditioning.

 

With coal prices increasing, it may be that some generators switch from coal-fired generation to the cheaper gas-fired generation; this may lessen the impact of what would typically see a falling market during warm spells. Also, a second round of talks between the UN and Iran is scheduled to take place this week which, all being well, will relieve tensions regarding the supply of Brent crude oil from Tehran and may see falls in the market, as should the 4 scheduled LNG deliveries into the UK in the short-term.

 

 

 

 

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