21st February 2024 Energy Price Alert – UK Gas & UK Electricity

On Tuesday there was a small bounce-back in the gas and electricity prices, although it was not significant in the context of the past two weeks’ price reductions. In fact it didn’t even move the market above Monday’s opening price.

We expect to see market readjustments such as this, but still maintain that the overall trend is downward.

Gas: Gas prices rose yesterday due to low LNG supplies and colder weather forecasts. Although storage levels are high, traders are concerned that limited LNG supplies will cause a drain on storage. 
Power: Power prices rose yesterday in line with underlying gas prices. Unplanned outages at Hartlepool nuclear reactors 1 and 2 have contributed to the gains in the prompt. Gains were limited in the front curve as wind generation is forecast to generate 20% above seasonal norms at 14.2GWs/day this week, limiting gas-fired demand. 
Oil: Oil prices corrected themselves yesterday, following a market correction after gains from the previous weeks. Despite weaker demand forecasts from the IEA and EIA, the conflict in the Middle East has provided bullish support to limit the decline in oil prices. 
Carbon (EU ETS): The ICE Dec-24 contract rose to €54.31/t yesterday. The contract is currently trading down at €53.74/t. 
Carbon (UKAs): The ICE Dec-24 rose to £34.05/t at the end of yesterday session. Opening lower this morning, the contract is currently trading at £33.65/t.

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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