Utilities Market Knowhow
Since our earlier Market Knowhow report, Gas and Electricity Wholesale prices have seen steady decreases.
Oil is up to $61 a barrel, although the average for Oct 2018 was $81. OPEC appear to be considering a further increase in production cuts to stimulate prices and counter the weaker demand forecasts, resulting from trade disputes.
The continued delivery of LNG has enabled us to maintain high Gas Storage levels, with Medium Range facilities being full. This is a positive position as temperatures fall and heating demand increases.
By the end of October, Wind’s contribution to generation was in the region of 20%, which could make this a record-breaking month, removing demand from other sources.
The Met Office forecast is for unsettled weather over the next couple of weeks. We are likely to see average temperatures with some night frosts and at times, strong winds.
The Market Knowhow Report Graphs illustrate where events such as the fears of EDF’s French Nuclear shutdowns and the drone attacks on Saudi Oil facilities (Sept 2019) had a significant impact on prices. During the winter, these would likely have been more prolonged. Twelve-month Wholesale prices are looking very competitive and at around two years lows, could be a great opportunity to secure 2019 and 2020 contracts.
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