UK gas and power prices have reached their new annual low after slightly recovering recently. This is mainly due to importing LNG and a decrease of oil prices. Nevertheless, the supply- demand balance is healthy at the moment. Maintenance work in Norway is cutting UK imports, but at the same time LNG stocks are reduced by sending out more LNG to make space for new cargoes.
Because of oversupply and concerns regarding the global economy, crude oil prices have been falling for months. In the week prior to the 21st August, crude oil prices fell significantly. This was encouraged by a shock increase in crude oil stocks and also China’s weak economy. These factors have both helped contribute to a new collapse in oil contracts, because long- term contracts are often linked to crude oil. As a result, European gas prices are affected as well.
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