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

Wholesale prices were calm on Monday, although what movement there was was generally upwards

Gas:  Gas contracts rebounded slightly yesterday. Prices rallied on the back of colder temperature forecasts, coupled with predicted further cuts in OPEC oil production. News that a ship was seized in the Red Sea by rebels added further bullish sentiment. Bearish market fundamentals helped soften intra-day gains by market close. 

Power: Power prices gained yesterday tracking movements of NBP contracts. Lower wind generation combined with colder weather helped add value to the near curve. Again, the market was supported by weak fundamentals, only 2 LNG ships are likely to berth in Britain before the end of the month, down 7 on the same period last year. 

Crude: Oil prices continued their upwards trajectory yesterday, with the market waiting to see if OPEC+ will continue or increase its current supply cuts. If cuts were to deepen, the market could prove volatile early next year.  

Carbon (EU ETS): The ICE Dec-23 closed at €76.61/t yesterday. The contract is currently trading down slightly at €75.96/t at the time of writing. 
Carbon (UKAs): The ICE Dec-23 closed at £42.28/t yesterday. The contract is currently trading at £41.71/t at the time of writing.  
The Procurement Group

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