1st August 2023 Energy Price Alert – UK Gas & UK Electricity

As mentioned in yesterday’s update 2 of the Norwegian gas fields are undergoing maintenance and gas prices have therefore risen ever so lightly.

Electricity prices on Monday moved up negligibly.

Gas: Gas prices rebounded yesterday, following the losses from last Friday. Maintenance at Troll and Kollsnes gas fields in Norway are due to begin today, tightening supplies by 42mcm/day. 
Power: The majority of the Power curve tracked the gains from the Gas market. Wind generation continues to output above seasonal demand, providing ease on the prompt with 8.2GWs/day.
Crude: Oil prices continued to rally following the expectation of Saudi Arabia extending their production cuts throughout September. Saudi Arabia are currently cutting 1million barrels/day for August. There are still concerns surrounding questionable Chinese economic data and the potential rise in US interest rates, limiting any further gains. 

Carbon (EU ETS): The ICE Dec-23 contract fell to €86.67/t at yesterdays close. Opening at €86.75/t today and has continued to trade at this level at the time of writing. 
Carbon (UKAs): The ICE Dec-23 contract continued to fall yesterday to £45.50/t. Today the contract opened at £45.7/t and but fell back to £45.5/t at the time of writing.
The Procurement Group

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