Breaking: Ed Advised Voters to Freeze High Prices UK Gas Prices Hit Multi-Year Lows on Oversupply

lab-energy

This just in from Reuters newswire will have political repercussions:

LONDON, June 4 (Reuters) – British spot and forward prices for wholesale natural gas fell to multi-year lows on Wednesday as oversupply combined with weak spring demand.

British gas for delivery next winter traded at 59.40 pence per therm in the afternoon, its lowest level since at least the third quarter of 2011, while day-ahead spot gas prices dropped close to four-year lows at 41.50 pence per therm.

“The gas market is completely oversupplied. There’s a lot of gas in storage, a lot of gas in pipelines, a lot of LNG tankers have been coming in and demand is very low because of mild weather, so that’s putting a lot of downward pressure on the market,” one gas trader said.

Why is the UK gas market over-supplied? Because the price was high. Now it will fall. Price signals in a free market balance supply and demand. That is how free markets work…

If however you listened to Ed Miliband, who absorbed Marxist theory literally at his father’s feet, with a belief in a state-directed command economy with prices and rents controlled, you believe in bucking the market. If you followed Ed’s advice last year and froze your gas bill until 2017 you are likely to now be locked into a gas price that will be higher than it will probably be in 2017. Miliband thought he was clever with that price freeze gimmick. Not looking so clever now…




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Quote of the Day

David Cowling, the BBC’s head of political research, in an internal memo…

“It seems to me that the London bubble has to burst if there is to be any prospect of addressing the issues that have brought us to our current situation. There are many millions of people in the UK who do not enthuse about diversity and do not embrace metropolitan values yet do not consider themselves lesser human beings for all that. Until their values and opinions are acknowledged and respected, rather than ignored and despised, our present discord will persist. Because these discontents run very wide and very deep and the metropolitan political class, confronted by them, seems completely bewildered and at a loss about how to respond (“who are these ghastly people and where do they come from?” doesn’t really hack it). The 2016 EU referendum has witnessed the cashing in of some very bitter bankable grudges but I believe that, throughout this 2016 campaign, Europe has been the shadow not the substance.”

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