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

On Tuesday, wholesale Gas and Electricity prices were broadly neutral as current stock overhangs offset traders wishes for higher prices to offload previously purchased cargoes. 

Given the flat ‘curve’ over five years, as shown at the bottom of the table, we believe that prices will continue to drop in the mid to long term.

Gas: Another bearish day for NBP prices, with forecast demand set to drop to 193mcm, 75mcm below seasonal norm. On 11th March, British storage stood at 1,125mcm, 244 mcm higher than the same date last year.
Power: A mixed bag for prices throughout the power curve yesterday. Wind forecasts for week 12 have been revised down to 20% above seasonal norm. There are only two confirmed LNG shipments that will reach UK shores throughout March.
Oil: Prices were stable yesterday with the market having a lot to mull over. US CPI for February out turned higher than expected, in turn boosting the USD, making oil less affordable to non-USD currency holder. Ongoing tensions in the Middle East continue to provide market upside. 
Carbon (EU ETS): The ICE Dec-24 closed at €56.51/t yesterday. The contract is currently trading at €56.55/t, at the time of writing.
Carbon (UKAs): The ICE Dec-24 fell to £36.43/t yesterday. The contract is currently trading at £36.38/t.

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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