Tuesday 22 March 2016

Great opportunity to place fixed price contracts – Y Report

It is a great opportunity to place fixed-price contracts now, according to Inenco's Y Report.

That's because the gas and power markets are "largely at contract lows".

Dorian Lucas, Energy Analyst said: "There is scope for prices to fall going into the summer as supply fundamentals improve, however if you look in a year-on-year saving, it is definitely worthwhile entering the market now and locking in those contract low prices."

[youtube url="https://www.youtube.com/watch?v=wWnJkw8h9x8" width="575" height="323"]

 

Customers looking to place flexible price contracts need to consider their attitude to risk.

Mr Lucas added: "If you’ve got quite high cover already, the current oil prices don’t represent necessarily a great opportunity to increase hedges further."

However customers with low hedges should consider taking "a little bit" of power to mitigate some of the risks ahead of the summer.