11th December 2023 Energy Price Alert – UK Gas & UK Electricity

Prices continued to drop on Friday, across all periods for electricity and all but one for gas.

Our view remains that the market fundamentals support further price reductions.

Gas: NBP contracts fell yesterday as mild weather and upcoming lower festive demand placed strain on the market. Weather forecasts throughout January are uncertain and this is adding volatility to the market.  

Power: Near curve power contracts tracked NBP movements on Friday. Further out on the curve falling carbon prices added pressure.  (For today’s price outlook, please refer to the table below). 

Oil: Oil prices rallied on Friday, a rare occurrence amid multi week declines. Concerns remain around Chinese economic recovery as crude imports fell in December, the first Y-o-Y decline since April.

Carbon (EU ETS): The ICE Dec-23 closed at €68.63/t on Friday. Opening at €68.32/t this morning, the contract is currently trading at €67.64/t

Carbon (UKAs): The ICE Dec-23 closed at £32.56/t on Friday, a multi-year low. The contract is currently trading at £32.40/t
The Procurement Group

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