Energy news in general

Sea_Shell

April 23 !!!!

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(Slightly deranged laughter)

GingerTim

Those electricity prices keep on climbing...

pochase

Gas is no much better.

I confess to watching it with a morbid fascination. It is so far out that the numbers are losing the connection to reality.

GingerTim

Quite. You'd think that something must have to happen before the next quarterly review - though I fear nothing good.

Shedman

The good news (if there is such a thing these days...) seems to be that the Germans have got their gas storage up to nearly 85% (with their intended aim of 95% by end of October) so they are reducing their activity on the market, which led to a 20+% reduction in Dutch gas futures yesterday and, so far, a 25% reduction in UK North Sea Sept futures (with 20% ish reductions in other months).  Mind you the next months futures price always seems to drop in last couple of days of previous month.

A German minister also said that there has also been a lot speculative activity as well that he believes cannot be sustainable which will hopefully reduce impact on gas prices

pochase

Matches the quote from the Auxilione briefing.

Malkytheheed

wakeupalarm said:

Experts warn utility bills could top £7000 next year

Experts at energy consultancy Auxilione warned that the cap could double even from that record high by April next year, hitting £7,263

This doesnt make sense at all. 

A: This is unafordable for 90% of the population so wont happen. 
B: Makes no sense in terms of the energy price globally. Russia only genenrates 16% of the worlds gas. So even if it turned it's taps off tomorrow, it should cause a 400% increase in price. 
If tesco closed tomorrow ASDA wouldn't suddenly start charging £80 for a kinder egg. 

Total farce. 

savers_united

The higher it goes, the more it costs everyone even if Gov't freeze the cap in April or give more handouts it will just not touch the sides, I mean even if for next winter they cap at this years £3600, that's a massive intervention but still leaves a very high bill. There will be solutions, the problem is time to put them in place. 

eastcorkram

Why has the price of gas dropped 25% today?
Have they found some they'd forgotten about?

spot1034

eastcorkram said:

Why has the price of gas dropped 25% today?
Have they found some they'd forgotten about?

Primarily down to the news from Germany that they have almost hit (and are likely to exceed) their targets for storage this winter. 

There was encouraging news as well the other day that production from the North Sea has been rising significantly in recent months.

The very sharp rise in the gas price last week and the sharp fall back since shows how febrile the market has become. It is being driven by fear more than rationality.

If there are clear signs of a concerted effort to get to work on fresh exploration and production, not just in this country but in other parts of Europe this alone should have a calming influence on markets even if it will be a year or two before we see the fruits of this. At the moment we are paying the price for the short-sightedness of politicians here and around Europe over the last twenty years or so. Any sign that they are starting to learn lessons from their stupidity will be positive for markets.