It has been a chaotic few weeks in the energy markets… with ongoing strikes by the Lederne trade union, several oil platforms have been taken offline. This has majorly disrupted Norwegian supply and hiked gas prices to a 10 month high.
Weather forecasts in the UK are pointing at colder temperatures beyond seasonal norms (It never rains but it pours!), this is beginning to drive energy prices higher. This is normal market behavior as we approach the cooler Autumn periods, when traditionally prices begin to increase entering the Winter period. However, temperatures across Europe are also expected to be far below seasonal norms and typically if Europe is cooler, they will take delivery from the UK to settle with other European countries which may drive the prices higher and faster than expected for this period.
If Boris Johnson carries out his threat to walk away from Brexit talks altogether if a clear path towards a deal is not agreed this month, expect the markets to react promptly with many analysts forecasting potential large jumps to the energy markets in this event.
If you have an energy contract due within the next few months Fox Energy can assist your business, get in touch by calling 01233 884510 or email [email protected].