Wednesday, 4 May 2011

Factors Influencing UK Business Gas Prices

This is how it works. When crude oil prices raise so does natural gas prices for continental Europe and consequently the UK, because of pipeline connections to Europe.

Since UK gas prices aren’t completely hooked up to European oil indexed gas prices, gas in the UK becomes cheaper than in continental Europe and European gas traders end up buying gas from the UK. That is when the demand in increased and UK gas suppliers put their prices up to stop the flow to continental Europe and to contain the price surge in the UK gas market.

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