Energy and Utility Management Consultants

Wholesale Market Price Update

August 2013


Over the past fortnight gas wholesale prices have fallen slightly, before steadying over the past few days. Oil prices have been increasing in response to the potential supply threat which may result from the growing crisis in Syria, lingering above $110 / barrel for the first time in several months. Tensions in Egypt and Libya have also contributed to rising oil prices. Until now the gas market has generally defied the increases seen in oil, but in the past few days a greater correlation has been seen, and should the Syrian crisis escalate further then oil may become a strong driving force for the electricity and gas markets. Electricity wholesale prices have broadly followed the gas market before a slight increase leading into the Bank Holiday weekend. This has been exacerbated by low wind generation over the past week, and a rising Coal market.





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