29th August 2023 Energy Price Alert – UK Gas & UK Electricity

The market rose markedly on Friday and over the weekend on news that the Australian strike is once again going ahead next week, although negotiations continue so expect a bumpy road over the next few days.

As you will see in the table below gas gains outstripped electricity % wise

Gas: Prices rose at the end of last week before the bank holiday weekend. The grid was undersupplied due to a reduced output in Norwegian flows. Additionally, market uncertainty returned due to the ongoing possibility of Australian LNG strikes, which previously were expected not to occur. 

Power: Power prices followed the Gas market at the end of last week. Gains in the UKA contracts added further bullish pressure to the further out curve. Wind generation is expected to output 20% below seasonal norms this week and 20% above average next week. 

Crude: Oil prices ended last week lower than it began. Traders are expecting further interest rate hikes in the US following the Federal Reserves speech on Friday, with the next inflation report due at the end of August. 

Carbon (EU ETS): The ICE Dec-23 closed at €85.68/t yesterday as the EU ETS is not impacted by UK bank holidays, so continued trading. Opening today at €86.00/t, the contract is currently trading lower at €85.66/t. 

Carbon (UKAs): The ICE Dec-23 closed at £48.03/t last Friday. The contract has yet to begin trading at the time of writing. 

The Procurement Group

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