crude oil price
The National Grid is down by less than a percentage point in the early hours of today’s trading session. However, the start of the session extends yesterday’s 2.5 per cent drop in the price of the share price of the company.
The drop comes amidst reports that the company had extended its annual emergency gas shortage drill from two to four days. The drill is designed to simulate the company’s decision when the push comes to shove, and they have to decide which customers get to use or at least cut their gas consumption and which don’t.
There has also been concern over the growing energy cost in the UK, with consultancy Auxilione suggesting that the price cap is likely to go as high as £6,500 a year in April. The company has also drawn up plans for making payments of up to £5m this winter to compel companies and factories to ration their energy use by cutting production. Companies that will not sign for the funds have also been warned of compulsory gas rationing.
The recent market price drops are a snapshot of what to expect in the next few trading sessions. As the company continue to struggle with the demands due to high demand, rising gas prices and low supply of gas, there is a high likelihood that we may continue to see prices continue falling for the next few trading sessions.
Therefore, based on recent price action, there is a high likelihood that we may see the National Grid share price trading below the 1140 price level in the coming trading session. In addition, we may also see prices dropping to hit the ascending trend line, which will make a trade below the 1100 price level a possibility.
However, should the prices, at any point, move past yesterday’s opening price of 1177p price level, my bearish analysis will be invalidated.
This post was last modified on Aug 24, 2022, 11:32 BST 11:32