A mild November and December meant healthy storage levels were maintained, keeping price rises at bay.
We saw high flows from the Norway pipeline, along with the higher than average seasonal temperatures. Together, this helped maintain an over supply of gas in the network. Gas prices were also helped by the news of a transit deal brokered by Russia and Ukraine.
Additionally, wind levels picked up, so wind power was able to reduce the usual reliance on gas-fired power stations to generate electricity.
Gas price forecast
The start of 2020 saw an increase in gas prices on the back of a similar increase in oil. This was a result of the US airstrike in Iraq. However, gas prices fell back in the second week of January.
Hopefully gas prices will stay at current levels, unless there is a prolonged period of colder weather. If there is, the current over supply should mean prices don’t rise immediately.
Electricity price forecast
Wind generation is still going strong. Alongside the lower gas, prices, we are hopeful this will keep electricity prices in check. Which will be a welcome respite after several years of continuing rises.
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