29th January 2024 Energy Price Alert – UK Gas & UK Electricity

Gas and electricity prices wholesale prices rose on Friday, as the result of issues in the US with exporting LNG.

The US may not be exporting LNG until late February which will cause an issue during the next month. Timing is not great due to the issues in the Red Sea.

If you have contracts expiring during the month of February, or even in to early March, our recommendation would be to keep an eye on the markets in the next day or so with a view to entering into contracts asap.

Gas: Gas prices strengthened across all contracts at the conclusion of last week. US Freeport LNG is undergoing maintenance, due to an electrical issue and will not be supplying the market until late February. The rate of storage withdrawal will have the UK at 20% full by the end of February. 
Power: Power prices continued to track the gas market last Friday. Carbon prices softened slightly, weighing on some further out contracts. Three of the UK’s nuclear reactors are undergoing unplanned outages, combining for 1.8GWs.
Oil: Oil prices continued to prove volatile last Friday but closed upwards of hopes for increasing global demand. China has called for more stability in the Red Sea and has threatened their business relationship with Iran if the situation does not calm. 
Carbon (EU ETS): The ICE Dec-24 contract rose to €63.58/t last Friday. This morning the contract is trading up at €63.7/t. 
Carbon (UKAs): The ICE Dec-24 fell to £33.41/t on Friday. The contract is currently trading up at £32.89/t.

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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