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

Wholesale Gas and Electricity prices continued to fall on Thursday and we expect this to continue given the market fundamentals.

On the generation front the price last week was static at £64.30/MWh and renewables outstripped fossil fuels, producing over 37% of UK demand.

At retail, prices have been a little volatile over the last few weeks but essentially Electricity prices are around 20p/kwh, with Gas between 5p/kWh and 6p/kWh.

Gas: Gas prices fell yesterday following high storage levels, with Gas demand expected to be 57MCM/day below the seasonal norm and forecast to remain under seasonal average over the next few sessions.
Power: Power prices fell yesterday, tracking the bearishness of the wider energy complex. Temperatures are in line with previous forecasts. Heysham 2 nuclear reactor is set to return online today from a planned outage.
Oil: Oil prices eased in the afternoon of yesterday’s session. Losses were limited by the unexpected drawdown of US crude inventory. However, bearish news of the US Federal Reserve to hold interest rates at the current rate overpowered any upward momentum.
Carbon (EU ETS): The ICE Dec-24 closed at €59.07/t in yesterday’s session. Opening at €58.9/t this morning, the contract is trading at €59.29/t at the time of writing.

Carbon (UKAs): The ICE Dec-24 fell to £35.47/t yesterday. Opening at £35.61/t, the contract is still trading at this point at the time of writing.  

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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