UK GAS HITS 185p A THERM, HIGHEST SINCE 2022

🔴 UK gas just topped 185p a therm, the highest since late 2022.

Europe's benchmark price passed €75/MWh on Wednesday. Same story: highest since the tail end of the spike that followed Russia's invasion of Ukraine.

Why now. Europe delayed its summer stockpiling because wholesale costs were high, betting the Iran conflict would end before winter and prices would drop. It didn't. Storage levels are well below normal for this point in the year, and countries now choose between buying into a spike or paying more later.

The BBC reports renewed US-Iran hostilities have driven the past week's jump, with analysts fearing the Strait of Hormuz stays closed even longer. Around a fifth of the world's oil and LNG usually travels through it.

Hamad Hussain at Capital Economics told the BBC he does not expect the waterway to begin reopening until early 2027, and warned gas could top €80 by the end of this year. Storage operators told him at the outbreak of the conflict they would wait three to four months before stocking up. It has now been about six months.

The household maths. Wholesale prices help set Ofgem's cap, which rises 4% in October to £1,723 for a typical home. Cornwall Insight forecasts domestic prices could climb a further 9% in the new year. Craig Lowrey said a fresh wholesale rise would "increase pressure" on the January forecast, though he stressed there is "plenty of time to go".

Centrica boss Chris O'Shea says the UK has "almost no gas in storage" for this winter. The energy department says prices are set on international markets.

Oxford Economics' Ángel Talavera: "serious, but not catastrophic". The swing factor is the weather.

Are you doing anything different this winter to keep the bill down?

#energybills #gasprices #ukeconomy #costofliving #causeanuproar