22nd February 2024 Energy Price Alert – UK Gas & UK Electricity

On Wednesday the wholesale gas and electricity markets were stable, and we expect price reductions to resume in the coming days.

Gas: NBP prices were relatively flat yesterday. Demand remains below seasonal average and storage switched back to injection. Temperatures have been revised downwards, as we move towards the weekend, which has helped strengthen prompt contracts. 
Power: Power prices across the prompt incurred moderate gains yesterday with revised forecasts signalling colder weather and a slight reduction in wind output. Results from the UK’s latest capacity auction show that 7.64GW was awarded a capacity agreement with the clearing price £35.79/kW. 
Oil: A volatile day for oil trading yesterday before prices ultimately ended slightly up on the previous close. Russia has agreed to cut oil production by 500,000bbl/day as part of an agreement with OPEC. Drought conditions in the Panama Canal eased, allowing the US passage for petroleum exports. 
Carbon (EU ETS): The ICE Dec-24 contract closed at €54.55/t yesterday. The contract is currently trading at €53.76/t.
Carbon (UKAs): The ICE Dec-24 closed at £34.12/t at the end of yesterday session. Opening lower this morning, the contract is currently trading at £33.65/t. 

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The Procurement Group

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