Gas prices - who's profiting?
Discussion
BBC news saying "gas prices have risen by up to 800%".
Who is getting rich off the back of these massive price hikes? Presumably the traders, rather than the producers or suppliers?
Reports of businesses that are selling their allocations/contracts because they can make more profit by selling on something that they have bought for future use than they can from using it to make their normal products. Shortsighted?
How long before people stop playing the game, and prices drop back to "normal"? The current spot price is surely unsustainable.
Who is getting rich off the back of these massive price hikes? Presumably the traders, rather than the producers or suppliers?
Reports of businesses that are selling their allocations/contracts because they can make more profit by selling on something that they have bought for future use than they can from using it to make their normal products. Shortsighted?
How long before people stop playing the game, and prices drop back to "normal"? The current spot price is surely unsustainable.
A lot of gas comes to the uk under long term contract.
If they have excess (don’t need it to run a power plant, large industrial unit) then you can sell of the excess, or optimise usage and sell some off.
If you need it to run your facility, then there’s not so much you can do except hope the end product takes the cost into account.
Who profits? If you had bought some any time over the first half of the year, then you will profit IF YOU DONT NEED IT. So, that leaves speculators…. And in the gas market there aren’t so many about…
Banks and finance houses seemed to cut down their participation a few years ago.
Some are still involved in the market as are some hedge funds.
Ultimately it’s producers who have excess capacity that can turn up production, they are the ones that will profit. But any meaningful increase in supply will lessen the price…
Me, you and most of the large consumers in the country are the losers….
If they have excess (don’t need it to run a power plant, large industrial unit) then you can sell of the excess, or optimise usage and sell some off.
If you need it to run your facility, then there’s not so much you can do except hope the end product takes the cost into account.
Who profits? If you had bought some any time over the first half of the year, then you will profit IF YOU DONT NEED IT. So, that leaves speculators…. And in the gas market there aren’t so many about…
Banks and finance houses seemed to cut down their participation a few years ago.
Some are still involved in the market as are some hedge funds.
Ultimately it’s producers who have excess capacity that can turn up production, they are the ones that will profit. But any meaningful increase in supply will lessen the price…
Me, you and most of the large consumers in the country are the losers….
b
hstewie said:
hstewie said: Well you could have made a few quid this last month as a normal person if you'd been savvy enough to get a few quid in an oil/gas/energy fund or ETF.
Not in the same proportions as you might imagine - I bought BP & Shell last year anticipating a return of demand, and while there have been decent gains, these are not life changing. A significant amount of the extra money seems to be being ploughed back into share buybacks. There might be special dividends next year.
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