The potential increase in gas prices following a rise in Middle East tensions didn’t materialise. Instead, gas prices have moved a little in the opposite direction.
This was largely due to a lower demand for gas coupled with a healthy supply in reserve. In addition, oil prices fell (the two are loosely linked) which helped considerably. With developments in the Middle East, there had been the potential for an increase in both oil and gas prices.
Milder weather toward the end of October, rather than the expected colder spells, helped to keep gas prices at current levels.
Gas price forecast
With good flows reported from Norwegian pipelines, gas prices may stay at this level for a while longer. And with plentiful gas supplies in storage, prices may not shoot up when the next cold snap arrives.
Electricity price forecast
An early cold weather forecast would usually push up the price of energy quickly, but this was offset by a rise in wind generation. Confirmation that renewables are now at levels where they can have a positive influence on electricity prices.
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