Gas prices likely to fall 30% this year

1carminestocky

Retail gas prices lag behind oil by about 9 months, partly due to utility companies hedging, but also due to their general slowness to act.

:eek: Woooahhh..this is a surprising statement from mech.

mech_2

1carminestocky wrote: »

:eek: Woooahhh..this is a surprising statement from mech.

It doesn't disagree with anything I've said before.

1carminestocky

*For once, 1carminestocky just can't be bothered.*

SwanJon

1carminestocky wrote: »

*For once, 1carminestocky just can't be bothered.*

MEDIC! MAN DOWN!

1carminestocky

SwanJon wrote: »

MEDIC! MAN DOWN!

:rotfl: Don't worry, mech just got me on one of my thankfully (or not depending who you are ) fleeting feelings of desolation. Back on the feet of my balls now. Or summat like that.


Still can't be bothered to search through mech's myriad of graphs and looonnnggg posts to prove him wrong, though.

mech_2

If it's that hard to find anything contradictory then it's difficult to see what's so surprising in the statement I made above.

1carminestocky

mech wrote: »

If it's that hard to find anything contradictory then it's difficult to see what's so surprising in the statement I made above.

Good point. Well made. You win. Hands down. Bored into submission. Carry on. As you were.

savers_united

I am surprised by the small token amounts that the energy companies have started to lower their prices.
Gas has now been around 60p / therm for the past 6 months with summer 09 futures under 45p / therm and winter 09 just under 60p / therm.

We are back to levels seen during Jan 2008, so all increases during summer last year should now be wiped out, between 20-30% depending on the company.

The best bit, if these same companies buy 6 months ahead then prices they will be paying for summer 09 (44p therm) is only 10% higher than Summer 07 (40p therm) when retail domestic Gas tariff were some 50% less than what they are today.

I don't know how much longer they can hold back from the inevitable, wholesale prices have dropped for a prolonged period, well within their advanced purchase period.

And to top it all sterling is getting stronger against the € and other major currencies

Cardew

savers_united wrote: »

And to top it all sterling is getting stronger against the € and other major currencies

Sterling has made a slight rally over the last couple of weeks against the US$ from the lowest level for decades.

However it dropped 4 cents today.

Even allowing for that mini rally Sterling was still 40% higher against the US$ last summer.

savers_united

Not sure if Gas is purchased in Dollars, as we buy no gas from the US I thought it more likely to be Euro or Russian ruble that affects our prices.
I maybe wrong, like oil maybe gas is purchased in dollars.

Anyhow many of these companies are foreign owned are can buy in Euros so don't think exchange rates play that great an affect on domestic prices, the price per therm quoted have already taken exchange rates into consideration, that is why prices would be more like 2007 if the pound was stronger.