Energy and Utility Management Consultants

Oil Price Softens, Gas and Electricity to Follow?

April 2012

 

The traded price for Brent crude oil is down from its recent high of almost $126.5/bbl and is currently standing at a shade under $122/bbl - this amid continued concerns of actions between the UN and Iran (who have now cut exports to Spain) which are yet to come to fruition, but strong US oil inventory figures and the possibility of further stockpiles being released may reduce the impact of any actions on the market. With temperatures expected to fall to 4ºc below seasonal norms on Sunday, we would normally expect some upward movement; but current supply capacity is ample, with Rough Storage standing at some 63% full (which is almost 30% more than the same point last year), and several LNG deliveries expected to the UK in April, so no shocks are expected to be seen as a reaction to outside weather at the moment.

 

 

 

 

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