There seems to be no end to the decline in gas prices. On Ascension Day, the price continued to fall, after the downward trend that has started since the corona crisis continued earlier this week.
The declining demand for gas and the resulting falling price can partly be explained by the summer that has started. The high production of sustainable energy and biogas also plays a major role. On Ascension Day, the yield of solar energy broke a record. The oil market has bottomed out. Agricultural diesel has become a few cents more expensive since last week and now costs approximately 84 cents (weekly price Farmers4All) to 85 cents (daily price LTO Member Benefit) per litre, excluding VAT and discounts.
Trade War Flared
The energy prices for the short term of 1 or 2 weeks ahead are predictable. For example, it is obvious that the oil price will rise if the economy picks up again and slowly climbs out of the unprecedented corona valley. The oil price fell again this week because of the escalating trade war between China and the US.
In the longer term, it is all more uncertain than ever. As soon as the coronavirus revives anywhere in the world, it will negatively affect prices. Long-term prices have become dependent on so many factors due to the corona crisis that it is mainly a matter of guessing what the prices will do.
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