Gas market to see ‘continued volatility’ as UK exposed to global trends
By Alex Kemp, Professor of Petroleum Economics, University of Aberdeen
December 28, 2021, 10:09 amUpdated: December 28, 2021, 11:49 am
The recent spectacular increase in the UK wholesale natural gas price from less than 50 pence per therm in April 2021 to a peak of nearly 300 pence in October came as a complete surprise to everyone, including market traders engaged daily in buying and selling the commodity.
How did this happen?
The price of any commodity depends on the interaction of their supply and demand curves.