14th August 2023 Energy Price Alert – UK Gas & UK Electricity

There was very little price movement on Friday

Gas: Gas prices settled mixed at the conclusion of last week. Falling in the prompt but gaining in the further out curve. Losses continued in the prompt, due to the rising levels of wind generation. However, losses were limited on the expectation that wind production will fall in later forecasts, leading to an increased demand for gas-fired production.

Power: Power prices tracked the gas market at the end of last week. Gains in oil and carbon supported gains in the further out Power curve.

Crude: Oil prices rose last Friday as signs of a tightening market emerged. Demand projections by the IEA and OPEC+ added bullish pressure, whilst hopes of the US Federal Reserve not increasing interest rates further pushed prices higher. Resistance was found within the strengthening $USD, causing oil to be more expensive for non-currency holders.

Carbon (EU ETS): The ICE Dec-23 rose to €86.73/t last Friday, continuing its recent bullish run. Opening at the same price today, the contract is trading at €86.77/t at the time of writing.

Carbon (UKAs): The ICE Dec-23 found some support last Friday and rose to £40.31/t. The contract has opened at £40.00/t flat and continues at that price at the time of writing.

The Procurement Group

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