1st February 2024 Energy Price Alert – UK Gas & UK Electricity

There were very marginal movements on Wednesday, despite a shortage of new supply. This is good news because usually in these situations, prices spike.

Yesterday electricity prices dropped marginally, whilst gas prices rose marginally. We expect continued stability before downward pressure resumes.
Gas: Unplanned outages in the UK and Norway caused key NBP contracts to rise yesterday. Forecasted temperatures are to remain above seasonal, keeping gas fired power demand to a minimum. Shipping data indicates there are 4 LNG cargos set to dock by 6th February.

Power: Power prices tracked NBP movements yesterday. An unplanned outage at EDF’s Hartlepool reactor 1 will apply pressure, with return not expected until 9th February.  This morning the market has opened slow, with little trading activity. 

Oil: Brent oil pricing eased off during yesterday’s session. For the fourth consecutive month Beijing have reported slow recovery in manufacturing. This has helped offset simmering tensions in the Middle East. The US reserve announced that interest rates would remain unchanged, potentially leading to some bullishness in the market.

Carbon (EU ETS): The ICE Dec-24 contract climbed to €64.16/t yesterday. Opening lower this morning the contract is currently trading at €63.79/t. 

Carbon (UKAs): The ICE Dec-24 closed at £34.66/t yesterday. Opening higher today at 35.10/t, the contract is currently trading flat to last nights close. 

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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