Utilities Market Knowhow!
Since our Market Knowhow Report earlier this month, Gas and Electricity Wholesale prices have decreased slightly.
Although there has been pressure from a cold spell, creating additional demand, the fundamentals remain positive.
We are still receiving deliveries of LNG which are helping to minimise the impact of higher demand and maintain high Gas storage levels.
Wind and Coal continue to provide good levels of generation, avoiding any concern of Electricity shortages and lowering the use of Gas.
Despite OPEC and Russian production cuts, Oil prices are stable, holding in the region of $59 a barrel. The US continues to increase supplies and there is negative sentiment regarding world growth, which was reinforced with China announcing that 2018 saw their slowest since 1990.
The Met Office are forecasting colder temperatures into February, which if prolonged or severe could have an impact on prices. Due to this, any contract renewals due soon should be considered.
Should you require further information, contact your lpm Estates Manager.
Life Property Management work closely with utilities broker Indigo Swan, to bring the best energy rates to their clients. Indigo Swan’s Market Knowhow is a regular, comprehensive report on the position of the Utilities Market.
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