Greek crisis – what crisis!
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June started with higher than expected demand due to the cool start to the month but returned to the forecasted levels as the warm weather arrived. The fundamental supply was good throughout the month and allowed for good injection into the long term storage which sits at 55 % capacity. The prices have been influenced by oil and currency markets with short sharp movements as traders speculate looking for profit. The Greek crisis, more forced reduction in the Dutch Groningen field output and Russian-Ukraine prepayment negotiations all had ongoing influences. Oil prices stay between $62-66 a barrel. Euro ranged between €1.36-1.40 to the £.
On the world wide risk factors concerns of economic slowdown pushed by Chinese stock market and Greece is putting downward pressure on the oil price which should keep gas prices down. The stability of the € will depend on how the Greek situation plays out, likely the € will strengthen against the £ when the uncertainty is removed, this will provide upward pressure on £ gas prices. Overall the current energy prices look good and expect a general trend upwards as we move to the end of the summer with short term blips as speculation on world risk factors develop.