15th November 2023 Energy Price Alert – UK Gas & UK Electricity

On Tuesday prices continued to nudge up gently.  Nothing significant but increases none the less

Gas: Gas prices rose across all contracts yesterday as rising Gas demand combined with a short grid, which offsetting the bearish impact of increased Wind output. Gas demand is expected to have risen by 53% in the session. The grid was undersupplied by 5mcm, with an 8% decrease in LNG send out. 

Power: Power prices rose throughout most of its contracts yesterday, influenced by the wider energy complex, namely Gas and Oil, despite bearish carbon markets. Wind production has averaged 11GW/day so far in November, 2GWs more than the average between 2018-2022.

Crude: Oil prices started yesterday strong before retreating at the end of the session. The IEA predicts oil demand to grow by 2.4m barrels/day for the rest of 2023, whilst 2024 projections see increases of 930,000 barrels/day. OPEC+ has also increased their demand forecasts over 2023. European inflation and CPI data is due later this week, which will influence prices further. 

Carbon (EU ETS): The ICE Dec-23 closed at €78.63/t yesterday. The contract is yet to trade at the time of writing. 
Carbon (UKAs): The ICE Dec-23 closed at £41.29/t yesterday. The contract has not yet traded at the time of writing.  
The Procurement Group

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