Wholesale gas and electricity prices eased back on Tuesday with Q4 2024 electricity now below £84/MWh and with winter 2024 below £88/MHw because Q1 2025 remains stubbornly high.
Overall, this is good news and we are hopeful that the reductions will continue.
| Gas: Gas prices fell yesterday despite Norwegian outages expecting to reach 182MCM/day. The British grid was expected to close 3.2mcm long. Power station demand for gas is expected to fall to 6.6MCM from 23.4MCM by next week. Storage fell to 77% capacity from 81% this week to make up for the shortfall of the Norwegian maintenance period. Power: Power prices fell yesterday, tracking the declines in the wider energy complex market. Power demand across Q3 of the year so far has averaged 28.4GWs, 1GW less than the 2019-2023 average. Oil: Oil prices fell yesterday, with prices falling below $70/barrel for the first time since 2021 due to the weak global demand concerns. Chinese imports only rose by 0.5% in comparison to the rise of 7.2% in the previous month. The market is looking forward to interest rate cuts in the US and EU which is expected to spur demand, with the announcement to be made next week. Carbon (EU ETS): The ICE Dec-24 closed at €64.92/t yesterday. The contract has found some support this morning, currently trading at €65.18/t. Carbon (UKAs): The ICE Dec-24 closed at £42.27/t after yesterday’s session. The contract is currently trading higher at £42.22/t this morning. |
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