10th October 2023 Energy Price Alert – UK Gas & UK Electricity

As anticipated the market took a significant upward jump yesterday following the weekend’s news from the Middle East.  This is normal when such events happen.  The market does drop back but typically waits until some sense of normality returns so this can takes days & weeks, rarely months.  The situation is not like Ukraine where our primary gas supplier, in that case Russia, was ostracised and everyone had to scramble around for gas.

If you’re not under pressure to renew now then hold on
Gas: Gas prices jumped upwards across all contracts yesterday due to the industrial action at Australian LNG plants and the ongoing Israel-Hamas conflict, shocking commodity markets. Prompt prices were additionally supported by Norwegian outages, of 18MCM. A Chevron spokesperson confirmed that they had received a “notice of intent to take industrial action” in at the Gorgon and Wheatstone facilities in Australia. 
Power:  Power prices were impacted by the wider energy complex yesterday, with the gains in Gas and Oil. 
Crude: Oil prices rose yesterday, reversing last week’s bearish pricing, as the conflict in the Middle East threatens supplies. Oil markets were already working with tight supplies due to the output cuts from OPEC+. 

Carbon (EU ETS): The ICE Dec-23 rose to €81.75/t yesterday. The market opened at €82/t today and continues to trade at this level at the time of writing.  
Carbon (UKAs): The ICE Dec-23 rose to £44.37/t yesterday. The contract has yet to open at the time of writing. 
The Procurement Group

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