13th June 2024 Energy Price Alert – UK Gas & UK Electricity

Wholesale gas and electricity prices rose across the board on Wednesday but in very modest numbers.

This was caused by concerns about ongoing supply which we believe will abate over the coming days.

Gas: Prices proved bullish yesterday on the back of Uniper formally ending their gas supply relationship with Russia. Despite further outages at Norwegian oil fields, supply into Easington remained steady. Yesterday’s demand was forecast to be around 37mcm below seasonal norm.

Power: Power prices tracked upwards throughout yesterday’s session, partly influenced by the rise in NBP contracts. However, subtle gains in the UKA Dec-24 contract helped support the far curve.

Oil: Oil prices gained yesterday among expectations of decreased inventory over the Summer. The US dollar fell in value yesterday, bringing bullish sentiment to the market.

Carbon (EU ETS): The ICE Dec-24 closed at €70.74/t last night. The contract is currently trading at €71.10/t at the time of writing.

Carbon (UKAs): The ICE Dec-24 finished higher at £48.75/t by last night’s close. After some market activity this morning, the contract is still trading at the same level.

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The Procurement Group

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