15th May 2024 Energy Price Alert – UK Gas & UK Electricity

Wholesale Gas and Electricity prices were broadly neutral on Tuesday, following Friday and Monday’s reductions. We anticipate continuing limited movements, albeit expecting the trend to be downward.

Winter ’24 Electricity remains stubbornly at over £80/MWh with Gas remaining, also stubbornly, at over 90p/thm.

Gas: Gas prices rose yesterday, following low wind output of 3GWs on the day. However, prices were limited from gaining further due to demand levels being 60mcm behind seasonal norms, at 170mcm. LNG supplies remain low, as the UK expects to receive their next cargo on 21 May. 
Power: Power prices tracked against gains in the gas market yesterday, despite declines in the UK carbon market. Low wind output supported day ahead prices, whilst multiple nuclear reactors are offline for maintenance, leading to increased demand for gas fired generation.
Oil: Oil prices fell yesterday after a volatile session, eventually falling to bearish economic data from the US. US producer price inflation rose by 2.2%, further than March’s increase of 1.8%, which will ease demand. OPEC+ has maintained their optimistic prediction for the global economy to rise by 2.8% in 2024, and 2.9% in 2025. 
Carbon (EU ETS): The ICE Dec-24 slightly increased to €70.22/t yesterday. This morning, the contract opened at €70.29/t and is currently €71.18/t.
Carbon (UKAs): The ICE Dec-24 continued to weaken yesterday, settling at £36.96/t yesterday. The contract is currently showing some support this morning, trading at £37.15/t.

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

Join us...

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