Natural gas oil prices 112896
Published on: Mar 3, 2016
Transcripts - Natural gas oil prices 112896
Tough financial forces and lousy summerweather appear to be determined to test and takecharge of the wholesale energy supplymarketplace.Prices tumbled throughout the middle of June to new lows. Annual gas costs are now 15%lower than the same time last year, whilst yearly force prices fell to a two-year low plus are 22%down year-on-year.Falling force prices dragged yearly spark spreads down 7% to £3.4/MWh, plus even thatreliable stalwart coal is having a difficult time of aspects, with slipping prices buffering the fall ofdark spreads somewhat to a £17.9/MWh premium to spark spreads.So whats been setting off these price crashes? Well, concerns regarding debt in the Eurozonenations hasnt aided. Greece lurches from crisis to crisis and even the election of a uniquegovernment is doing small to allay fears regarding its long-term future. But its slowing financialgrowth in the US plus China that has truly forced global stamina markets downwards. BrentTycoon Energy Crude Oil tumbled to $97.6/bl, its lowest level because January 2011, andyearly API coal dropped to a hot 20-month low of $95.4/t.However, all of this is advantageous news for consumers. While we will be missing out on thatBBQ summer the forecasters guaranteed us, both domestic plus commercial end-users havewatched stamina prices drop inside real terms. A fall in inflation has also helped to stabilise theretail market, yet the big difference has been at the pumps, where motorists have finally startedto find the numbers found on the forecourts going down instead of up. This, combined withlower electricity and gas costs, has given the British economy a short respite, during which ithas a chance to drive up production plus keep the delicate heart of UK PLC beating for a whilelonger.Ironically, its been the biomass market which has held the fort. Despite biomass contractsdropping, with costs for 2013 down 1% to £88.5/t, costs are still around 6% high than thistime last year. Theyve recovered from their four-year low plus are at their highest level for fivemonths. This boost has been helped in no small measure with all the approval of the plans for a40MW staw-fuelled biomass plant in Snetterton, Norfolk, which have finally been provided thego-ahead.The real headline grabber throughout June plus into July has been the atrocious weather theUK has experienced. Lower than average June temperatures plus storm following storm hasresulted inside a rise in UK gas demand. Supply peaked at 223.1mcm on 11th June, in thecenter of the bad weather. Industry watchers believe that the unseasonably bad weather hasencouraged several people to do something they wouldnt usually do inside June - they turnedthe heating up. The outcome was that though the national program decreased 0.1%, theterritorial system climbed 2.2%. To date, summer demand (calculated from April 1st) was down
7.8% found on the national program yet up a staggering 31.1% found on the territorial system,compared to the same time last year.What this indicates is the fact that whilst gas demand for power generation is down year-on-year, expenditure by households and little companies has risen. This signifies that gasexpenditure is acting because a barometer for the productiveness of the UK economy and whilethe big users might be trying, homes and companies are continuing to ride out the worst of thefinancial storm, putting a more positive face on what has been a difficult few months.How prices can fare in the upcoming limited weeks may depend on 3 things - the resolution (orotherwise) of the Eurozone crisis, and the economic condition of the US and China. If they startto wobble we can see prices start to climb back up again.