20th March 2024 Energy Price Alert – UK Gas & UK Electricity

Wholesale gas and electric prices were broadly stable on Tuesday as market fundamentals played off against Traders.

Our view remains that there will be turbulence, but that the general trend remains downward, given the market fundamentals of warm weather, good stocks, adequate supplies and low Asian demand.
Gas: Gas prices settled mixed yesterday. Near curve reforecasts of a lower wind generation increased the demand for gas, however bearish fundamentals of high supplies and falling demand limited gains and saw other contracts fall.
Power: Power prices fell across most contracts yesterday, following the declines in the carbon market. Mild weather forecasts are also expected to dampen gas for power demand.
Oil: Oil prices reached a new high yesterday since last October. The combination of potential lower supplies from OPEC+ and the increased demand from the US and China saw prices rise. However, gains were limited due to the strengthening of the $USD, making oil more expensive for other currencies.
Carbon (EU ETS): The ICE Dec-24 closed downwards to €60.84/t in yesterdays session. The contract is trading at €60.70/t at the time of writing.
Carbon (UKAs): The ICE Dec-24 fell to £35.73/t yesterday. The contract opened at £36.00/t but is currently trading at £35.98/t.

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The Procurement Group

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