27th November 2023 Energy Price Alert – UK Gas & UK Electricity

Prices continued to rise on Friday as the cold, below seasonal norms, weather continued
Gas:  Gas market prices were mixed across the curve at last Friday’s close. Wind generation forecasts were revised 2.4GWs higher to average 9.7GWs/day, however still performing 20% below average. The looming cold spell saw prices remain strong in the short term. 

Power: Power prices tracked the wider energy complex in the previous session. Temperatures have been revised 1-3 degrees downwards, below seasonal norms. 

Oil: Oil prices fell last Friday as investors prepared for the OPEC+ meeting that had now been pushed back to the 30th of November. Investors are expecting the organization to reach an internal agreement as African members want to increase outputs. Brazil continues to provide bearish news to the market as it wishes to increase supplies to 3.2m barrels/day by 2028. 

Carbon (EU ETS): The ICE Dec-23 traded flat to €76.60 /t last Friday. The contract is currently €75.12/t at the time of writing. 
Carbon (UKAs): The ICE Dec-23 rose to £46.06/t on Friday. Opening lower today, the contract is currently trading at £45.25/t at time of writing.  
The Procurement Group

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