U.K. Natural Gas Joins Commodity Rally With Fourth Weekly Gain

Inspired Energy’s Risk Manager Nick Campbell is featured in Yahoo and Bloomberg;

“Rising crude, a weakening British pound and a lack of liquefied natural gas imports coincided with cooler-than-average weather to extend the fuel’s rebound from the cheapest levels since 2009. Nuclear outages in Europe and soaring coal prices are adding to demand for the fuel used in power generation and heating, according to Nick Campbell, energy risk manager at Inspired Energy Solutions.

“Fears over colder weather and nuclear reactor outages in both France and Switzerland have raised forecasts for gas usage in order to generate enough power to make up the shortfall.” Campbell said by e-mail. The plunge in sterling makes U.K. gas more attractive to overseas buyers, as well as cause LNG shipments to divert to more lucrative markets in Asia” he said.

“The rally probably won’t be sustainable. A period of tight supply in LNG markets, which saw spot prices in Asia climb over the past three weeks, will ease as production facilities in Australia and the U.S. return from maintenance. One bullish factor was removed overnight as Norway averted a strike that would have curbed pipeline supplies to the U.K.”

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