7 Holding Steady: But Winter’s Coming
Peace talks breaking down The hopes that eased prices earlier in the year have faded and negotiations now appear stalled. Any sign of increasing conflict or political escalation could see risk premiums return quickly, as traders reposition for reduced stability and higher volatility. Supplier Repricing Even if the wholesale market stays calm, suppliers may still increase renewal offers to manage risk. Contracts issued during winter often carry a higher margin and businesses leaving decisions late, may find pricing moves before they act. Market Psychology Prices often react to headlines before fundamentals change. If confidence turns and traders begin to expect tighter supply or stronger demand, forward pricing can shift sharply. Sometimes sentiment alone is enough to start a new direction.
Learn the Lessons of Last Winter and Stay One Step Ahead:
The current situation is good news. Businesses are finally seeing energy bills fall after years of pressure. However, history tells us that winter carries more risk than any other season. The market responds to expected demand long before the weather arrives. That means the best deals often appear when confidence is high and the risk still looks distant. Now is the time to make the most of this window.
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