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

Both gas and electricity prices rose slightly at the end of last week, primarily due to complications caused by stormy weather, which meant that ships carrying LNG could not dock as planned. 

This is clearly a short term problem and once the ships dock we will be back in an oversupply situation and therefore expect continued downward pressure on prices.

Have a good Monday

Gas: Gas prices rose at the conclusion of last week. Supported by unplanned outages and delays in LNG arrival due to the cargoes being unable to dock because of Storm Isha’s strong winds. 

Power: Power prices followed the Gas market yesterday. Power demand has averaged 0.8GWs/day more throughout January than seasonal average. Day Ahead prices softened due to the expected Wind generation of 16.5GWs with thanks to Storm Isha. 

Oil: Oil prices rose last Friday following ongoing concerns around the Middle East and possible cold weather disruptions to US production, providing bullish supply news. Fuel and insurance costs continue to rise for cargoes having to re-route around South Africa. 

Carbon (EU ETS): The ICE Dec-24 closed at €63.65/t last Friday, slightly upwards on the previous close. The contract is currently trading at €61.98/t at the time of writing. 

Carbon (UKAs): The ICE Dec-24 continued to rise last Friday, closing at £35.85/t yesterday. Opening bearish this morning, the contract is currently trading at £34.80/t. 

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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