Gas traders start giving it away

[JohnD]

...but sadly not for long.

Let's hope we start to see retail prices coming down, eh?

"A glut of natural gas supplies in Britain has seen prices collapse and left traders having to pay for it to be taken off their hands.
Wholesale gas prices for immediate delivery turned negative on Tuesday as supplies surged in from the new Langeled pipeline from Norway.

Britain's gas storage capacity is 96% full so firms need to offload supplies."

http://news.bbc.co.uk/1/hi/business/5402370.stm?ls

Today's share price, tee hee!
http://www.moneyextra.com/stocks/LS...oday&mavg_period=&image_size=&time=1159960669

http://www.moneyextra.com/stocks/LS...week&mavg_period=&image_size=&time=1159960759

 

[tigger]

Ok can all you clever chaps out there explain to me why, when the price of gas ( or anything) goes up it is always instant, but when it goes down, as in the case of gas at the moment, we have to wait 6-9 months to feel the benefit in our pockets?

 

[serge33]

it because the gas that all the companies bought was on summer pricing and is being stored, and that was expensive, the market works about 6 months behind, so really no one is seeing a benefit from this gas.

 

[paulbrown]

it because the gas that all the companies bought was on summer pricing and is being stored, and that was expensive, the market works about 6 months behind, so really no one is seeing a benefit from this gas.

Not your fault serge33, but this is the stock reply from the suppliers cartel.

The truth is they put the price of stored stock up at the same time the market rose, but won't do the same when it falls. Most gas is used in the winter so we will probably not see it fall untill the mild weather comes in the spring. Or as tigger correctly said in 6 or 9 months time.

Next year after posting further record profits, Gordon takes half, the shareholders still laugh all the way to the bank and Ofgas sit on their fat ar*** waiting for their index linked pensions. In the meantime the workers freeze their cobblers off and small businesses go to the wall because they can't compete.

This is how economics works in the UK.