Energy Market Gas update

Russia has failed to nominate much volume for November, and none into the UK via Ukraine, this has sent a bullish signal to the energy market. BUT all contracts have stayed below recent highs so this does show that we may have peaked. There are still many risks but as the weather is forecasted milder and there is improved wind output, we may see further easing of prices.

It is too early to be seeing a downtrend, but we expect most contracts to trade below recent highs with the potential for a larger downtrend correction if weather conditions remain favourable.

CNG have announced they will be exiting the wholesale energy market by the end of November. Th this may trigger a fresh wave of energy firms that may go bust within a week due to the gas shipper CNG stopping business with them. These 18 suppliers will now need to search for an alternative Gas shipper.

Shippers play an important role within the industry given that suppliers cannot sell gas to customers without them. Suppliers who had bought Gas from CNG will now need to buy Gas at the current market rate which a lot of suppliers will struggle to do.

We all need to watch this space.