Energy Market Report for 10/02/12
Prices for electricity and gas fluctuated throughout the week, finishing with an increase for week-ending 10 February 2012. In fact, gas prices are up over 12% on the same time last year. See below for details:
Main drivers
Price rises early in the week driven by:
- Cold temperatures in UK and Europe at start of the week
- Faltering Russian gas supplies to Central and Eastern Europe
- Very high French power prices
- Oil supply issues in Sudan
- Tensions in Iran.
Fall towards the end of the week due to:
- Rises in temperatures
- Poor Chinese macroeconomic data
- Heavy gas storage withdrawals
- Continued concerns about Greek situation.
Outlook
With the cold weather now easing, prices look set to fall once again, as macroeconomic factors take precedence. The Greek situation continues to give cause for concern, and Moody's warning that several European countries, including the UK, face a possible downgrading of their credit rating is adding to the bearish sentiment.
Iran continues to give cause for concern, but with the Chinese economy continuing to show signs of overheating, the trend seems set to be downwards as we head towards the end of the winter period.
Client are therefore advised to monitor the market carefully, and seek to take advantage of any sustained fall in prices in order to lock in new contracts at an advantageous rate.
If you have any queries about energy procurement or wish to know how the current energy prices may affect your business, please contact us on 029 2002 2888 or email info@uesenergy.co.uk.
