28th May 2024 Energy Price Alert – UK Gas & UK Electricity

Wholesale Gas and Electric prices dropped significantly on Friday, especially in the latter part of the day.

We are yet to see whether this will be an ongoing trend, given the rises that we have witnessed since the end of February.

That said, reductions are always welcome news, especially on this scale…

Gas: Gas prices weakened as they approached Friday’s close. Wind output is expected to increase today and tomorrow, whilst temperatures are expected to remain in line with seasonal averages, thus pressuring prompt contracts.
Power: Power prices fell at the culmination of last week, in line with losses in the NBP market. Solar output throughout week 22 is expected to be around 10-20% below seasonal average at ~2.2GW.
Oil: Crude benchmark contracts finished last week at a three-month low, pressured by growing demand concerns. OPEC+ are scheduled to meet 2 June, and current low prices strengthen expectations of an extension to supply cuts.
Carbon (EU ETS): The ICE Dec-24 continued to strengthen last week, closing at €76.25/t. This morning, the contract has fallen off and is trading at €75.55/t at the time of writing.
Carbon (UKAs): The ICE Dec-24 finished last week at £45.83/t. At the time of writing, the contract has yet to open trading this morning.

#gas #electricity #businessutilities #businessgas #businesselectricity

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