21st December 2023 Energy Price Alert – UK Gas & UK Electricity

Prices rose on Wednesday, following a sustained period of signifiant reduction. They remain low, relative to prices, during the course of the year.

We expect reductions to continue in the long term, although there will be short term technical adjustments such as this.
Gas: Gas prices rebounded yesterday as forecasts of colder weather and higher demand for Gas fired generation supported the price gains. 

Power: Power prices rose yesterday following the support from the Gas market. The Carbon contract also rose, supporting gains on the further out curve. 

Oil: Oil prices continued to rise yesterday. Inflation fell to its lowest point since September 2021 in the UK, increasing the demand sentiment for oil. The next Bank of England meeting is due on the 1st of February, which will decide interest rates. 

Carbon (EU ETS): The ICE Dec-24 rose to €75.53/t yesterday. Opening at €75.56/t this morning, the contract is currently trading at €76.95/t. 

Carbon (UKAs): The ICE Dec-24 closed at £42.83/t yesterday, the contract is currently trading at a flat £42.00/t.
The Procurement Group

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