Summary of last months report:
Across the board, January saw decreases between month start and end. However, there was volatility in month of January.
During January, there was downward pressure in gas pricing, which bucks the expected seasonal trend. This was caused by milder weather than normal.
Winter 2020 saw a reduction of c11%.
The milder weather and increased availability of LNG shipments would imply that the supply will continue to outstrip demand for some time. European storage is c70% full which is c20% above the norm for this time of year and UK storage is at expected levels.
The annual contract prices reduced across the board in January, with all seasons showing reductions. This is driven by many factors, but increased wind generation and above seasonal temperatures will be helping.
With the start of the month seeing increased tension between Iran and the US, the oil price gained. However with this tension being short lived, the risk of supply issues reduced and the market returned to the previous levels.
With the outbreak of Coronavirus in China the market saw dramatic reduction in oil prices. This was a mixture of reality (small decreases in the demand from China) and speculation (the fear of more severed reductions in demand from China).
February Energy Price Outlook
We would strongly suggest reviewing all contract options now. The market is currently in a favourable position, relatively speaking, and there are risk factors that could change this. Please contact us to discuss your options further.
February News Stories
Ginger’s Green Energy –
In line with Ginger’s commitment to support green energy, we have taken the decision to ensure all quotes issued by Ginger Energy will now include a 100% renewable option. Renewables are becoming more and more competitive when compared to brown fuel mixes and we hope our clients will see the benefit in these tariffs.
Ovo Energy to pay for overcharging customers
Ovo Energy, who brought SSE’s retail business last year, is set to pay £8.9m for overcharging customers. Whilst some customers did not receive any bill, more than half a million customers were sent inaccurate statements. Click here to read more.
What happens to old wind turbines?
After 25 years, once the wind turbine reaches the end of its working life, it will be cut into three pieces. These three pieces will then be stacked and buried, disposing these wind turbine pieces in an environmentally friendly way is becoming an ever growing issue. Click here to read more.