European Gas Prices Have Fallen To 2021 Levels

[Gromit]

After the invasion of Ukraine wholesale prices spiked in September and our tariffs doubled.. Now they have reverted to pre-invasion prices, so presumably our bills will now halve to 2021 prices ?

https://www.theguardian.com/environment/2022/dec/29/european-gas-prices-fall-to-pre-ukraine-war-level

[Tilly2]

Don't hold your breath, Gromit.

[ToraToraTora]

You'd think so but there's a bit of cartel going on at the moment so they'll need a kick from the government.

[DTCwordfan]

wait for the Putin-'Poof' from the East - never mind bombing Ukraine but cranking down the weather for a cyclone bomb.....

[bobbinwales]

If thats the spot price then its not going to feed thru for along time as the suppliers book there fuel purchases months, maybe many months ahead of when they take the fuel otherwise they cant gaurantee therebe able to get it when its needed especially in winter. The spot prices go up and down all over the place from ridiculousley high to very low , this has been going on throughout the crisis but the underlying prices have doubled, doubled again and I not heard that changing.... hope it does though

[Gromit]

// Oil prices are significantly lower than they were before the start of Russia’s invasion, and only marginally above where they were at the start of 2022. Brent crude oil futures traded at $100 a barrel on 28 February, but were at $81.84 on Thursday. //

British Gas has told its 11 million customers that it is freezing its charges (at a high level) until March 2023.

[DTCwordfan]

you have to separate the gas and oil pricing here, the reason being that the oil market is far more fluid than the gas, Putain holding a grip over the eastern pipelines into Europe.

[bobbinwales]

But thats for contracts to get the stuff at a future date, whereas the market prices now and for next few months are based on contracts taken out several months ago.... isnt that how it works?

[DTCwordfan]

depends on the company, but yes there are differences, best to think that the overall supply position is a mix of contracts as in a gaseous club sandwich, and part of it will likely include an element of spot.

[youngmafbog]

You are correct Bobb.

[douglas9401]

The standard 'it'll take time to filter through' stuff on reductions.

Much more urgency shown when things are on the rise though.

[youngmafbog]

That wasnt true in the case of utilities though Douglas, they were held back by price capping and it killed off those companies that hadnt bought futures. And we are all paying for that bailout with increase standing charges.

Do you not understand how purchasing of futures works?

[douglas9401]

Are you a Victorian father?