Headlines:
- The US and Iran have been unable to agree terms for a peace deal.
- Small numbers of LNG shipments are passing through the Strait of Hormuz.
- EU Gas Storage is just 71% full.
On Monday the 28th of September, Gas and Electricity Year Ahead Wholesale costs were higher than last week. There are small decreases this morning. Oil is higher at $107 from $101.
It had been hoped that with the presidents of the US and Iran being in New York, that there may be a breakthrough in the peace discussions. Although this never happened, dialogue continues, with a phased opening of the Strait of Hormuz being an option. There are still restrictions on traffic, but some LNG shipments are being permitted by Iran. Houthi rebels are focusing their threats on Saudi Arabia’s assets, potentially impacting on Oil exports. Iran has tried to distance themselves from these attacks, which is another positive sign for flexibility in negotiations.
The EU’s Gas Storage levels remain a price pressure at just 71% full compared to 94% in 2024. There are further supply restrictions coming in January 2027, when the EU bans all Russian LNG.
The last week saw Gas provide 29% of generation, Wind 22% and 13% via the Interconnectors.
We would encourage customers with contracts that end in the next few months to discuss your renewals with us, and we will look to provide further advice and support as required.
