11th April 2024 Energy Price Alert – UK Gas & UK Electricity

On Wednesday, Wholesale Gas and Electricity prices dipped ever so slightly,  as market fundamentals won over the traders who are trying to push prices up. 

In reporting season, for trading companies, their profits are coming in with significant growth over 2022, due to their ability to influence the prices in the last year. Hopefully that is now coming to an end and the market fundamentals will win the day and as a result prices will drop.
Gas: Gas prices were mixed yesterday. Near curve prices increased due to limited LNG send out, and an unplanned outage at a gas treatment plant. LNG send out at the start of April averaged 11.8MCM/day, which is 86% lower than the average over the same period last year.
Power: Power prices fell yesterday, continuing to shadow the NBP and carbon movements. Carbon fell 1%, influencing the further out curve. Wind generation is expected to average 16.5GWs/day for the remainder of this week, which is 20% above seasonal demand.
Oil: Oil prices eventually settled lower in the session after fluctuating throughout the day. Ceasefire talks being held in Cairo, between Hamas and Israel have stalled, which provided bullish support alongside an OPEC+ decline in supplies. However, a build-up of 5.84million barrels in US Stocks limited further upside and eventually saw prices fall below the open. 
Carbon (EU ETS): The ICE Dec-24 fell to €62.87/t after peaking at a month high. This morning, the contract is currently trading up at €64.68/t after opening at €63.07/t.

Carbon (UKAs):  The ICE Dec-24 continued to fall to £34.95/t yesterday. The contract is currently trading at £35.10/t after opening at £35.40/t this morning.

#gas #electricity #businessutilities #businessgas #businesselectricity

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