In this week’s Resonance energy market podcast Jeremy Nicholson talks to Alfa’s Jason Durden about UK energy prices, as the market talks of worst-case scenarios and hope looks for a mild winter ahead.
Topics explored include:
- Oil remains stuck and while higher prices today aren’t exceptional, the backdrop is one of outlook vs near term supply. Product prices become a hot topic
- Gas prices surge ahead of Norwegian strikes that will impact UK supplies, with the Norwegian Government questioning such action during an energy crisis
- Concern of the impact of costs on manufacturing, in particular where there are continuous processes that can’t simply be turned off, or managed, to reduce impact
- Power simply reflects fuel input costs such as gas, carbon and coal, and there is no good news here
- UK still exporting significant volumes of power to France, a nation in crisis with its nuclear fleet
- The reality for UK energy users and suppliers is that due to the market structure we are less likely to feel the instant disruption that France and Germany face, but at what cost