Wholesale gas prices have collapsed!!!

MattyNeth

2/3 weeks ago we were all being warned that gas prices would have to go up 30-40% at least due to the price of gas increasing on the wholesale markets 50% over the previous few months. The companies then start putting the prices up accordingly, and interesting now that the price of that same gas has collapsed since 30th June back down to the levels seen in February.....

Price of gas on the wholesale market has dropped 33% in 14 days....

flashnazia

I was looking for this graph and I couldn't find it. Thanks for posting it.

If it continues I feel sorry for the CAP THEM NOW crew.

Then again, don't petrol and gas prices level out in august every year and then start rising again?

[Deleted User]

that is why all the capping hype, so that the gas suppliers would be sure of a steady (higher) income for years to come

I feel so sorry for people though, who were they going to believe?

alared

From what i heard on the radio,the Uk companies get it out the north sea, and because we don`t have storage facilities,they sell it to Europe at a low price.
Then of course, when we need to buy it back,they charge us a high price.
Are we idiots in this country?

Browntoa

surely the price is dropping as it's a period of low demand ??

markbloke

Lies, damned lies and statistics. A small section of graph tells you nothing on its own.
Compare the graph to last year and you'll see the same seasonal fluctuation in prices but with one big difference, the vertical scale on this year's graph is nearly twice last years!

Plushchris

MattyNeth wrote: »

Price of gas on the wholesale market has dropped 33% in 14 days....

So a drop of 33% in 14 days means that it will continue to drop? I dont think so, gas and electric prices are not going to drop significantly in the near future, if they do drop it wont be as much as they put them up by.

BG announce 35% on gas wednesday, they "may" announce a drop later in the year (and pigs might fly) but the drop wouldnt be 35% would it? Then they would put prices up again next year so slowly on a year to year basis the prices keep going up.

Personally I think you can take a 14 day chart like that with a pinch of salt, it could quite easily go back up by 33% in 14 days too.

[Deleted User]

a long term graph. See how the price has dropped back to the standard line.

http://www.marketoracle.co.uk/Article3353.html

StevieJ

The gas companies are telling us that the European suppliers link prices to Oil rather than gas (?), oil is up from around $70 -$125 over the last year, do you really think they are going to drop gas prices?

Browntoa

if fact was'nt it last year that due to supply disputes in Russia and the diversion of supplies to mainland Europe there was a real concern that we could run out of gas ???

Kimitatsu

alared wrote: »

From what i heard on the radio,the Uk companies get it out the north sea, and because we don`t have storage facilities,they sell it to Europe at a low price.
Then of course, when we need to buy it back,they charge us a high price.
Are we idiots in this country?

That is just not true. At the height of North Sea Gas the UK was a net exporter of gas, because Europe needed our gas we sold it to them at high prices. Because of the relatively low price of gas it has not been worth the oil companies exploring and drilling the more marginal fields (until recently) and so there is now a pipeline from Holland to the UK called the "zee line" (probably spelt wrong!) Because we are now a net importer of gas as we do not produce enough Europe is getting its own back as we now have to buy on the spot market for fluctuations in energy rather than buying on the long term markets.

As the price of gas rises so more exploration and drilling becomes viable, there is a new gas field to come on stream next year - the Jasmine field- which provide enough gas for the next 25 years. There are fields out there that are currently not viable but will be as the profits rise and the technology improves.

However as we have no capability to store natural gas in the UK (well not enough) the utility companies are encouraging people to cap and so be able to forecast the amount of gas they will need to buy on the long term markets so being able to buy at todays prices rather than having to buy on the spot markets which are expensive and only serve to drive the price up.