Natural gas natural gas-14884
Published on: Mar 3, 2016
Transcripts - Natural gas natural gas-14884
Tough financial forces and lousy summerweather seem to be determined to test andtake charge of the wholesale energy supplymarketplace. Prices tumbled throughout the middle of June to hot lows. Annual gas prices are today 15%lower than the same time last year, whilst annual power prices fell to a two-year low plus are 22%down year-on-year. Falling force costs dragged annual spark spreads down 7% to £3.4/MWh, plus evenwhich reliable stalwart coal is having a hard time of items, with slipping prices buffering the fall ofdark spreads slightly to a £17.9/MWh premium to spark spreads. So whats been setting off these cost crashes? Well, concerns about debt inside the Eurozonenations hasnt assisted. Greece lurches from crisis to crisis and even the election of the moderngovernment is doing little to allay fears regarding its long-term future. However its slowingeconomic development inside the US plus China which has certainly pushed global vitalitymarkets downwards. Brent Tycoon Energy Crude Oil tumbled to $97.6/bl, its lowest level becauseJanuary 2011, plus annual API coal dropped to a hot 20-month low of $95.4/t. But, all of this is wise news for consumers. While you will be lost out on which BBQ summer theforecasters guaranteed you, both domestic plus commercial end-users have watched staminaprices drop in real terms. A fall inside inflation has equally aided to stabilise the retail marketplace,however, the big difference has been at the pumps, where motorists have finally started to see thenumbers found on the forecourts going down rather of up. This, combined with lower electricityplus gas bills, has given the British economy a brief respite, throughout which it has a chance todrive up production plus keep the fragile heart of UK PLC beating for a while longer. Ironically, its been the biomass market which has held the fort. Despite biomass contractsdropping, with costs for 2013 down 1% to £88.5/t, prices are nonetheless about 6% highthan this time last year. Theyve recovered from their four-year low plus are at their highest levelfor five months. This boost has been aided in no small measure with all the approval of the plansfor a 40MW staw-fuelled biomass plant in Snetterton, Norfolk, that have finally been given the go-ahead. The real headline grabber throughout June plus into July has been the atrocious weather the UKhas experienced. Lower than average June temperatures plus storm following storm has resultedinside a rise inside UK gas demand. Supply peaked at 223.1mcm on 11th June, inside the middleof the bad weather. Industry watchers believe which the unseasonably bad weather hasencouraged several individuals to do anything they wouldnt usually do in June - they turned theheating up. The outcome was that although the national system decreased 0.1%, the regionalprogram climbed 2.2%. To date, summer demand (measured from April 1st) was down 7.8%
found on the national system nevertheless up a staggering 31.1% found on the regional system,compared to the same time last year. What this indicates is the fact that whilst gas demand for force generation is down year-on-year,usage by households and little businesses has risen. This means which gas expenditure is actingbecause a barometer for the productiveness of the UK economy plus while the big users could bestruggling, homes and companies are continuing to ride out the worst of the financial storm,putting a more positive face on what has been a difficult limited months. How costs usually fare in the next limited weeks usually depend on three points - the resolution(or otherwise) of the Eurozone crisis, and the financial condition of the US plus China. If theycommence to wobble we may see costs start to climb back up again.