Gas and electricity prices hit record highs last August and just as the October Year buying window was closing. Wholesale prices continued to fall in each case ever since. The Annual 2022 power contract price fell almost 80% over the subsequent 8 months though the forward curves of gas and electricity forwards have been pretty much flat-lining since February.
Oil markets also fell. The price reduction has been significant but limited in comparison to gas and power, weighed down by fears of a global recession and a – possibly transitory – surplus of embargoed Russian oil hanging over markets in South East Asia.
OPEC's Output Cuts and Future Implications
European Dependency on LNG and Oil Price Correlation
UK Power Prices and Factors Affecting Demand
French Nuclear Electricity and Extended Plant Lifespan
Uncertainties in the European Power Market
Rise in Network Balancing Costs and Risk-Premium in Power Contracts
Dominic Whittome is an economist with 25 years of commercial experience in oil & gas exploration, power generation, business development and supply & trading. Dominic has served as an analyst, contract negotiator and Head of Trading with four energy majors (Statoil, Mobil, ENI and EDF). As a consultant, Dominic has also advised government clients (including the UK Treasury, Met Office and Consumer Focus) and private entities on a range of energy origination, strategy and trading issues.
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