CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

UK PM pledges to protect energy firms after gas price surge

By News

09:30, 20 September 2021

A lit gas ring
Gas prices have more than doubled – Photo: Shutterstock

UK prime minister Boris Johnson pledged that his government will “do everything” to help energy firms struggling in the face of a natural gas price surge from going bust.

Johnson’s assurances came on Sunday following the demise last week of British energy suppliers People’s Energy and Utility Point.

The British PM told journalists at New York City’s JFK airport, the gas price crisis is not limited to the UK but is being experienced internationally due to “gas supplies and shortages of all kinds”.

Russian supply

Natural gas prices have been rising for months and are linked to increased demand for energy ahead of winter, and increased demand for liquefied natural gas from Asia. This increased demand has been further exacerbated by supply issues from Russian producers.

Speaking to reporters at JFK, Johnson said: “I think people should be reassured in the sense that yes, there are a lot of short-term problems not just in our country, the UK, but around the world, caused by gas supplies and shortages of all kinds.

“This is really a function of the world economy waking up after Covid. We’ve got to try and fix it as fast as we can, make sure we have the supplies we want, make sure we don’t allow the companies we rely on to go under. We’ll have to do everything we can.

Natural Gas

2.34 Price
+1.830% 1D Chg, %
Long position overnight fee -0.1703%
Short position overnight fee 0.1483%
Overnight fee time 21:00 (UTC)
Spread 0.005

Oil - Brent

76.93 Price
+1.280% 1D Chg, %
Long position overnight fee -0.0022%
Short position overnight fee -0.0197%
Overnight fee time 21:00 (UTC)
Spread 0.04


1,961.11 Price
-0.150% 1D Chg, %
Long position overnight fee -0.0185%
Short position overnight fee 0.0103%
Overnight fee time 21:00 (UTC)
Spread 0.30


23.62 Price
+0.100% 1D Chg, %
Long position overnight fee -0.0188%
Short position overnight fee 0.0105%
Overnight fee time 21:00 (UTC)
Spread 0.020

“But this will get better as the market starts to sort itself out, as the world economy gets back on its feet.”

What is your sentiment on Natural Gas?

Vote to see Traders sentiment!

US storm damage

In the US, the jump in natural gas prices has been underpinned by tropical storm Ida, which disrupted oil and gas production in the Mexican Gulf. US government statistics show that natural gas spot prices rose “at most locations” last week.

Indeed, the Henry Hub spot price, which is a pricing point for natural gas futures on the New York Mercantile Exchange (NYMEX), rose to a record $5.65 per million British thermal units last week, and on Monday had eased somewhat to $4.98. Nevertheless, the benchmark has more than doubled from $2.42 at the beginning of the year.

The PM’s assurances come amid the government’s efforts to engage with the energy sector. On Saturday, business secretary Kwasi Kwarteng met with senior executives from the energy industry to discuss the surging prices. At the time, Kwarteng wrote on Twitter that that he was assured that “security of supply was not a cause for immediate concern within the industry”.

Last week, following the collapse of People’s Energy and Utility Point, UK energy regulator Ofgem warned that the soaring gas prices will translate into increased prices for consumers.

Read more: Oil mixed as Ida disrupts supply and demand supports rises

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 535.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading