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Gas Prices continue to Tumble.
"Gas prices fell as lower-than-expected demand and plentiful supplies pushed down prompt and curve prices on Monday.
The fall came on the day that Prime Minister Tony Blair officially opened the Langeled pipeline, which has been largely responsible for a slide in gas prices this month.
Gas for Tuesday fell from an early opening level of 27.00 pence per therm to 23.75 pence, while within day gas fell 1.50 pence to 22.50 on modest demand in warmer-than-expected weather.
"Demand is not really there," said one trader. "Everything is getting sold down."
Late last week some weather forecasts had predicted that temperatures would be well below normal for the time of year this week.
But traders said those forecast sub-zero temperatures were looking unlikely, given Monday's mild weather. They also said November gas seemed far too expensive given the amount of extra gas that should flow into the UK from next month with the commissioning of the new BBL pipeline from the Netherlands.
"It looks very overvalued indeed without cold weather," a trader said.
November gas fell more than 2.50 pence on Monday, hitting a low of 49.50 pence, while December fell by a similar amount to 64.50 pence."
http://today.reuters.co.uk/news/articlebusiness.aspx?type=businessNews&storyID=2006-10-16T103817Z_01_L26206964_RTRUKOC_0_UK-MARKETS-BRITAIN-GAS-POWER.xml
Hopefully end consumers will start benefiting sooner rather then later..
The fall came on the day that Prime Minister Tony Blair officially opened the Langeled pipeline, which has been largely responsible for a slide in gas prices this month.
Gas for Tuesday fell from an early opening level of 27.00 pence per therm to 23.75 pence, while within day gas fell 1.50 pence to 22.50 on modest demand in warmer-than-expected weather.
"Demand is not really there," said one trader. "Everything is getting sold down."
Late last week some weather forecasts had predicted that temperatures would be well below normal for the time of year this week.
But traders said those forecast sub-zero temperatures were looking unlikely, given Monday's mild weather. They also said November gas seemed far too expensive given the amount of extra gas that should flow into the UK from next month with the commissioning of the new BBL pipeline from the Netherlands.
"It looks very overvalued indeed without cold weather," a trader said.
November gas fell more than 2.50 pence on Monday, hitting a low of 49.50 pence, while December fell by a similar amount to 64.50 pence."
http://today.reuters.co.uk/news/articlebusiness.aspx?type=businessNews&storyID=2006-10-16T103817Z_01_L26206964_RTRUKOC_0_UK-MARKETS-BRITAIN-GAS-POWER.xml
Hopefully end consumers will start benefiting sooner rather then later..
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I asked this a couple of weeks ago - energy derivative traders buy forward 9 months or so, which means the fixed prices they pay now (if they've bought futures instead of options, which lock them into the prices they've agreed) won't really go down for our benefit until next summer.The ability of skinny old ladies to carry huge loads is phenomenal. An ant can carry one hundred times its own weight, but there is no known limit to the lifting power of the average tiny eighty-year-old Spanish peasant grandmother.0
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wigginsmum wrote:I asked this a couple of weeks ago - energy derivative traders buy forward 9 months or so, which means the fixed prices they pay now (if they've bought futures instead of options, which lock them into the prices they've agreed) won't really go down for our benefit until next summer.
This is very true, alot of energy company's in the UK have been cought out due to the sudden drop in prices, they have bought a fair few months in advance to protect your prices from sky rocketing, however the pipeline was finished alot quicker than they expected, so dont expect any sudden drops in prices guys and gals.. well not for another 4 months at least :O(Hey folks...remember I might work for the company but I am a human and working in my own time, I will not responde to people who are rude, sarcy and crits me. My views and comments do not reflect British Gas and they are totally unreasponsable for my responses.0 -
BritishGasWorker wrote:...so dont expect any sudden drops in prices guys and gals.. well not for another 4 months at least :O(
That would be spring then :-(
Regards
XXbigman's guide to a happy life.
Eat properly
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even then .....not sure..they aint saying much to staff...Hey folks...remember I might work for the company but I am a human and working in my own time, I will not responde to people who are rude, sarcy and crits me. My views and comments do not reflect British Gas and they are totally unreasponsable for my responses.0
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We don't get told until the prices change.
When the prices went up we found out half an hour before the rest of the public.0 -
SNAP! we got told about an hour b4, then i decided to go on holiday for the next 3 days also to cover the following monday...Gal knows what i am talking about here!Hey folks...remember I might work for the company but I am a human and working in my own time, I will not responde to people who are rude, sarcy and crits me. My views and comments do not reflect British Gas and they are totally unreasponsable for my responses.0
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But if a co is stuck with high prices, because it has made firm contracts to buy forward, rather than have options, it could be in a diifult postion versus those who have taken options. Does it keep its prices up and lose custom. Trying to acquire customers is, I have read, much more expensive than retaining. They may choose to take a hit and reduce their prices to maintain their competitive position, or at least not to lose to many, as the least worse option.BritishGasWorker wrote:This is very true, alot of energy company's in the UK have been cought out due to the sudden drop in prices, they have bought a fair few months in advance to protect your prices from sky rocketing, however the pipeline was finished alot quicker than they expected, so dont expect any sudden drops in prices guys and gals.. well not for another 4 months at least :O(0 -
BritishGasWorker wrote:SNAP! we got told about an hour b4, then i decided to go on holiday for the next 3 days also to cover the following monday...Gal knows what i am talking about here!
SNAP we get told the afternoon before. lol. When i did another job here i used to get told about a week or so before as i would have to Brief it to our call centre staff but as i dont do it anymore i dont get to know
I would not build your hopes up about prices coming down until at least next winter. It may be sooner but im guessing from what i have heard that it may be by the end of next yearFiliss0
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