13th December 2023 Energy Price Alert – UK Gas & UK Electricity

Prices continued the downward trend of the previous 2 days on Tuesday which is welcome news as we go in to the Christmas shutdown.

It will be great if gas gets below the psychological 100p/thm for W24 before Christmas as it is below that level for all other periods.

Don’t get suckered by unscrupulous brokers in to signing longer contracts than 12 months as prices will continue to drop through next Spring & Summer.  if possible sign simply to 30/9/24; yes, you don’t need to sign for 12/24/36 months if you don’t want to.

Gas: Falling gas demand helped maintain bearish prices within the NBP arena yesterday, as the market continues to be governed by weather fundamentals. The expectation is that temperatures will remain above seasonal now, until well into January. Wind generation has also been revised upwards throughout next week. 
Power: NBP movements and weather fundamentals were instrumental in falling power prices during Tuesday’s session. Before the end of next week 9 LNG cargoes are expected to berth at British Shores, which could further squeeze prices. 
Oil: Oil prices dipped slightly on Tuesday as competing market fundamentals fought to outweigh one another. The market is also keeping an eye on potential increased tension in the Middle East where Houthi rebels claim to have hit an oil tanker bound for Israel.
Carbon (EU ETS): The ICE Dec-23 rose to €68.21/t yesterday. Opening at €68.15/t this morning, the contract is currently trading at €68.58/t. 
Carbon (UKAs): The ICE Dec-23 rose to £33.52/t yesterday, the contract is currently trading at £33.99/t. 
The Procurement Group

Join us...

and 2000+ other CFOs and FDs who are already enjoying our free resources and industry insights.