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Energy Pricing Report October 2019

Below is our pricing report for the 21st October, to keep you updated with what is happening within the energy industry and the factors affecting the price of your contracts.

 

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

 

 

Brexit

A new report from the Centre for European reform states Brexit has cost the UK economy almost £70 billion, the equivalent of £840 for every household in the country each year.

 

Last week a Brexit deal was agreed between with the European Union and MP’s got the chance to vote on Saturday with many parties expressing opposition to the deal, with Labour refusing outright to support it. After the session, the MP’s voted to do nothing, for now. Johnson sent an unsigned application to the EU to request another extension, but they are withholding their ruling until the MP’s have made a vote.

 

Even if a withdrawal agreement is reached this month, it will not end the threat of no deal. This means British businesses will face repeated periods of uncertainty about the potential for a sudden change in trading arrangements. It has to be ratified not only by Westminster and the European parliament but by national and regional assemblies across the continent. The risk of a single veto could crash the agreement and force the UK once more to extend negotiations or revert to unfavourable World Trade Organisation terms.

 

We are able to pre-buy energy in advance and secure fixed-term rates which will ensure your business isn’t affected by any sudden price rises related to Brexit. If you would like any more information, contact us today to talk about your options.

 

 

Oil Production

The pound remains steady at a multi-month high against the dollar and currently is balancing on a knife’s edge as we come into another week of decisive Brexit discussions.

 

The pound is currently trading at 1.16 against the Euro at the time of writing. Boris needs 320 votes for his deal to pass and some researchers have predicted if the deal fails to pass the pound can fall dramatically against the Euro. However, Danske Bank analysis suggests some, but not all, of the pounds recent gains will be unwound if the deal fails to pass through Parliament on Saturday.

 

Current Exchange Rate for 1 Pound Sterling:

Euro = 1.16

US Dollar = 1.30

Social Media competition Terms and Conditions.

The promoter is: T150 Energy Ltd, company no. 11974196 whose registered office is at Crossley Stone House, Crossley Stone, Rugeley, Staffordshire, West Midlands, WS15 2DQ.

 

  1. The competition is open to residents of the United Kingdom aged 18 years or over except employees of T150 Energy Ltd and their close relatives and anyone otherwise connected with the organisation or judging of the competition.

 

  1. There is no entry fee and no purchase necessary to enter this competition.

By entering this competition, an entrant is indicating his/her agreement to be bound by these terms and conditions.

 

  1. Route to entry for the competition and details of how to enter are via https://www.facebook.com/t150energy/

 

  1. Completion is ran on T150 Energy Ltd Facebooks page.

 

  1. Only one entry will be accepted per person. Multiple entries from the same person will be disqualified.

 

  1. Closing date for entry will be 18th October 2019. After this date the no further entries to the competition will be permitted.

 

  1. No responsibility can be accepted for entries not received for whatever reason.

 

  1. The rules of the competition and how to enter are as follows:

 

  1. Answer the question posted on T150 Energy Ltd.’s Facebook page correctly. Posting the answer in the comments section of the competition post.

 

  1. The promoter reserves the right to cancel or amend the competition and these terms and conditions without notice in the event of a catastrophe, war, civil or military disturbance, act of God or any actual or anticipated breach of any applicable law or regulation or any other event outside of the promoter’s control. Any changes to the competition will be notified to entrants as soon as possible by the promoter.

 

  1. The promoter is not responsible for inaccurate prize details supplied to any entrant by any third party connected with this competition.

 

  1. The prize is as follows: Plantronics Voyager Legend Bluetooth headset. The prize is as stated and no cash or other alternatives will be offered. The prizes are not transferable. Prizes are subject to availability and we reserve the right to substitute any prize with another of equivalent value without giving notice.

 

  1. Winners will be chosen: at random on Friday 18th October 2019. By a senior member of T150 Energy ltd.

 

  1. The winner will be notified by DM on Facebook within 28 days of the closing date. If the winner cannot be contacted or do not claim the prize within 14 days of notification, we reserve the right to withdraw the prize from the winner and pick a replacement winner.

 

  1. The promoter will notify the winner when and where the prize is delivered.

 

  1. The promoter’s decision in respect of all matters to do with the competition will be final and no correspondence will be entered into.

 

  1. By entering this competition, an entrant is indicating his/her agreement to be bound by these terms and conditions.

 

  1. The competition and these terms and conditions will be governed by [English] law and any disputes will be subject to the exclusive jurisdiction of the courts of [England].

 

  1. The winner agrees to the use of his/her name and image in any publicity material, as well as their entry. Any personal data relating to the winner or any other entrants will be used solely in accordance with current [UK] data protection legislation and will not be disclosed to a third party without the entrant’s prior consent.

 

  1. The winner’s name will be available 28 days after closing date by emailing the following address: energy@t150.co.uk

 

  1. Entry into the competition will be deemed as acceptance of these terms and conditions.

 

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