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

On Friday we saw larger movements on October 23 prices but then a mixed bag of minor increases and decreases further out with gas changes generally more pronounced than those on electricity
Gas: NBP prices seen gains during Friday’s session. Traders started to factor in the temporary loss of 24.5mtpa of Australian LNG, that would normally reach Asian markets. Further upside was seen due to Norwegian outages and above seasonal norm temperatures. This morning has seen further gains in prompt contracts.

Power: Power contracts largely tracked their NBP counterparts on Friday. Movement within the Carbon markets helped to keep far curve contracts bearish. (For our traders outlook on today’s market, as of Fridays close, please see the table below)
Crude: Oil prices were above $90/bbl on Friday as the extension of Saudi and Russian production cuts pressurised the market. Chinese economic data is still low with year-on-year imports down -7.3% and exports down -8.8%. Elsewhere, news coming out of the US was positive, with potential the federal reserve will hold off on any further interest hikes until October.

Carbon (EU ETS): The ICE Dec-23 continued closed at €81.52/t on Friday. Opening higher today at €81.93/t today, the contract has risen again to €82.10/t at the time of writing.  
Carbon (UKAs): The ICE Dec-23 closed at £42.21/t on Friday. Today the contract opened at £42.08/t, it has since fallen to £41.44/t at the time of writing.  
The Procurement Group

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