Oil indexation battle continues despite oil collapse
Europe’s utilities still pushing for hub-based gas prices amid oil rout
European utilities will continue to battle against the use of oil indexation to price gas in long-term supply contracts, despite lower oil prices slashing the cost of oil-indexed gas, they say.
Front-month Brent North Sea crude oil futures have fallen by almost 45% since early September last year on Atlanta-based Ice, where the contracts are traded. Having settled at $100.20 a barrel (/bbl) on September 8, 2014, the benchmark contract had dropped to just $56.29 a barrel by March 30 this year.
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