Record high crude oil prices are not the full story behind recent increases in UK wholesale gas prices, according to a new study of the UK gas market, writes Alex Froley. In his "2005 UK Gas Market Review" Niall Trimble, of the Energy Contract Company, says that recent prices for first quarter 2006 gas of around 59 pence/therm (and in early May Q1 06 was quoted around 61.5p/th) are "well beyond the level justified by even today's high crude prices." Trimble says that the price of Q1 06 gas is, according to his models, what would be expected to result from a Brent crude price of around $100/barrel, almost double today's crude oil price.
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