Gas and power contracts fall again

Seasonal gas and electricity contracts reached record lows in July, as winter storage worries were offset by lower oil prices. A strong pound against the euro, as well as an announcement that additional storage for the winter had been approved helped keep prices on a downward trend.

Annual October 15 gas fell to average 44.7p/th, a 2.7% reduction over the month and Winter 15 contracts fell by 2.3% to reach their lowest point since 2010. Electricity prices followed gas prices with the winter 15 contracts falling by 1% to average £45.4/MWh.

Oil prices also fell considerably throughout July, averaging $57.7 per barrel which was a fall of 9.7%. This was caused by the lifting of US oil export sanctions imposed on Iran, giving the market a gradual rise in supply.