October Energy News

Australian labor unions have issued notice of their intention to recommence strikes at LNG facilities, leading to the shutdown of an Israeli gas field. This move has the potential to disrupt supplies and has caused a 17% increase in European gas prices. Additionally, a significant offshore gas field in Israel has been halted, resulting in a surge in oil prices as concerns grow regarding the ongoing conflict. Investors are also apprehensive about the possibility of prolonged high-interest rates in both the US and Europe.

Energy experts are advising businesses to closely monitor the stability of the energy market and consider adopting green energy alternatives if they haven't already. Despite some relief in energy prices earlier this year, unforeseen outages and ongoing summer maintenance have driven market prices higher, despite recent bearish market fundamentals.

Regarding the latest report, Andrew Grover, the CEO of Advantage Utilities, a commercial energy and sustainability consultancy, commented, "It is crucial for businesses to remain vigilant in the current energy market, which remains highly unstable. We have already witnessed significant fluctuations in energy prices due to ongoing disruptions, even with healthy gas storage levels. We anticipate that energy prices will remain at their current levels for several years to come."

Bullish Factors (upward pressure on markets):

• Middle East tensions
• Unplanned outages, closures and strikes
• High interest rates across US and Europe

Bearish Factors (downward pressure on markets):

• UK near storage capacity
• Demand is below average thanks to the warmer weather
• Wind generation above average