18th November 2024 Energy Price Alert – UK Gas & UK Electricity
On Friday wholesale Gas and Electricity prices were thankfully generally neutral following the increases of the last 10 days, as we have progressed in to Winter.
TPG’s view is that we can expect more volatility throughout the Winter as is normal, before prices ease back in the Spring and Summer.
Gas: Gas prices proved to be volatile last Friday. An increase in forecasted wind generation led to less reliance on gas for power demand. The higher gas prices are attracting more LNG cargoes, with several cargoes diverting away from Asia and towards Europe.
Power: Power prices were mixed at the conclusion of last week. Temperatures are due to fall 3°C below the norm over this week, leading to a rise in heating demand. However, wind generation is forecast to output 11.8GWs/day this week, 20% above norms.
Oil: Oil prices fell last Friday as doubts of another US interest rate cut were implied by the Federal Reserve Chief by declaring “the economy is not sending any signals that we need to hurry to lower rates”.
Carbon (EU ETS): The ICE Dec-24 fell to €68.1/t on Friday. The contract is currently trading at €68.3/t.
Carbon (UKAs): The ICE Dec-24 fell slightly to £38.16/t last Friday. The contract is currently trading higher at £38.6/t this morning.
