Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Energy prices show no sign of slowing - 30-09-2021

Wholesale prices shot up relentlessly yesterday throughout the day, posting huge jumps in values. A nearly 10% rise in a single day at an already record breaking valuation will make this one of the most noteworthy days in the history of the markets.

There is a sense these valuations are no longer being driven by fundamentals as much, but from a bottle neck of buying for 1st October, fear and speculation over supply this winter. Yes flows from Russia to Europe did decrease by 1/3 this week, which is noteworthy, but does it justify the nosebleed valuations and jumps seen?

Wind levels are picking right back up in the UK, storage levels are at 100%, flows from Norway are increasing and LNG orders, though low, are starting to pick up.

The big question on everyone’s mind, is what kind of winter we will have, and early models are suggesting this to be on the cold side, but these weather runs often change, but participants in the markets are taking no chances and buying now, with the expectation a cold winter will leave Europe and the UK short.

Prices are moving even higher this morning again…