Is the return of the 'price of gas linked to price of oil' theory/excuse imminent?

1carminestocky

The energy industry have been very quiet regarding this oft-peddled theory whilst the price of oil has been hitting the buffers. I note the price of crude is on the rise again. Any guesses as to who will be first to put up their gas prices and re-visit this theory/excuse?

Decado23

if the wholesale price rises, care to lay odds on whether the 'delayed price change due to buying up gas in advance' idea quietly disappears?

kippen_noedel

lol, I think no price rises.

the answer is long winded by nature but start by looking up wholesale prices in STERLING, not Euros you'll see the price curve is against us in the UK. There is still more downward pressure on gas and as long as we don't see Ukraine & Russia going at it again I doubt we'll see any price increases, this year, in the UK.

Other than the fact a relative works for one of the big companies ( he's not in position to be given price sensitive info) I became interested in Utilities as a source of hedging my bets in the stock market over the past few months.. The £ is getting stronger which will offset oil price rises to a reasonable extent. Industry is also using much lower amounts of gas so more is available for domestic users.

High prices cost EVERY UK domestic distributor a sizable chunk off of their profitability. They actually make more profit when prices are low. However I don't hold any of their stock during normal times.


Still what do I know, I only have spread sheet of data for the past 15 years, not a crystal ball.

1carminestocky

There's also been a marked decline in petrol/diesel demand. Hasn't stopped the prices at the pumps rising. We will see. At least this thread is here for looking back at in the months to come.