Utilities Mini Market Knowhow!
Since our Market Knowhow Report last month, Gas and Electricity Wholesale prices have decreased slightly.
Mild temperatures for this time of year have reduced demand, whilst further deliveries of LNG are helping to maintain good Gas storage levels, at 65% full.
Wind has provided very high levels of generation so far this month at 20%, lowering the use of Gas.
The Oil price is slowly heading upwards as OPEC and Russia look to inflate it with production cuts. This stands at $65 from $61 two weeks ago and adds pressure to the cost of Gas, feeding into Electricity. Increases have been restricted due to record US Oil production and negative sentiment for world economic growth.
The Met Office believe temperatures are likely to be above average over the next month, avoiding the supply concerns this time last year due to the, Beast from the East.
As we head closer to the 29th March Brexit deadline, there is uncertainty as to what impacts there may be on Gas and Electricity prices in the lead up to and after the event, with sentiment possibly exaggerating any physical implications.
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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