Overview
With the 31st of October deadline looming for Brexit, Boris Johnson has negotiated a deal to leave the European Union. In the news, the pound closed on a 5-month high against the dollar.
Though this might be good news, there are still several hurdles to cross. The first Parliamentary seating on a Saturday since 1982 was held at the weekend, where MP’s got the chance to vote, no deal was signed off and negotiations will continue this week on a third extension.
The deal also has to be approved by national and regional assemblies across the continent. One single veto could derail the agreement and the UK will have to apply for another extension for negotiation where the EU will be able to exert maximum leverage.
What Does This Mean for Energy Contract Prices?
Prices will be volatile, especially over the next few days and weeks as uncertainty continues to build as the deal has to be approved. Even if your contract is not up for renewal, contact us today to discuss your options. We are able to buy your energy in advance to secure rates that will not be affected by the future price rises.
Why?
If you would like to know what factors have affected the energy contract prices, please continue to read the report below for further information.
Gas and Power
Both Gas and Power contracts dropped in price last week, as the market weakened following the announcement of a Brexit deal. The UK also faces an influx of LNG (liquified natural gas) deliveries at the end of the month, helping drive down British wholesale gas prices.
Despite the pound trading higher against the Euro and US Dollar, his morning contract prices have continued to trade lower in price which is mainly due to Brent crude weakening over the weekend.
Crude
Brent crude traded lower on Thursday as data confirmed an increase in the US oil inventories. The report is taken once a week on a Wednesday by the EIA (Energy Information Administration). When oil stocks are low the need and demand for it are higher which results in a higher trade price and when there is a surplus of oil the trade price drops.
The prices have dropped back down slightly but are still trading higher than at the start of this month, Brent at 2.8% higher and WTI at 2.3%.
Current price standings:
Brent Crude = $59.00/bbl
WTI Crude = $53.63/bbl
