Price spike softens today but market still remains high

Day ahead gas prices gradually softened during Wednesday’s trading, however premiums remained when compared to the previous sessions.

Despite ongoing issues in Israel, the Baltic pipeline leak and LNG terminal strikes in Australia, prices across the curve corrected down after what seemed to have been an overreaction to global events earlier in the week.

A positive LNG outlook and a bearish oil-market likely helped to pressure prices. The latest shipping signals indicate that six vessels laden with LNG are on course to arrive on British shores by the 22nd of October. This includes the Magdala which is scheduled to deliver volumes from Trinidad and Tobago at the Dragon No.1 terminal tomorrow.

Furthermore, ICE data shows that the Brent Crude benchmark contract shed around $2/barrel on Wednesday, retracing some of the steep gains posted earlier in the week.

However, day ahead gas prices have rebounded this morning (12/10/2023) with near-curve contracts trading more than 5p/therm (0.17p/kWh) above their previous close at time of writing.

It’s really important as a business that you keep a track on what’s happening in these extremely volatile times.

With prices being so high at the moment, our weekly price trends update is designed to help explain what the key drivers are and provide you with all of the information to make a well informed decision.

If your electricity or gas contract is up for renewal in the next 6 months, we would encourage you to compare the market now as we are starting to see suppliers withdraw and re-issue much higher prices.

Compare prices online for your meter by clicking here or contact your Energy Advice Line account manager now for the latest information.