Oil prices fell to their lowest level in four years on concerns that global supply is outstripping demand. These reductions in oil had a knock on effect on gas and power prices in the UK and were compounded by a recent report by the International Energy Agency claiming that global oil demand is set to increase more slowly than previously estimated.Long-term contract follow oil reductionsReductions in oil and other commodities fed into gas and power prices. Long-term gas contracts fell in October. Summer 15 gas dropped 4.2% to average 53.1p/th and the contract ended trading 16% below levels seen at the start of 2014. Long-term power prices also dropped in October, with the summer 15 power contract losing 2.3% to average £48.5/MWh.
Business Energy Market Brief November 2014 - Spot contracts surge to five-month highs