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

Wholesale Gas and Electric prices decreased at an even greater rate on Tuesday, after the holiday weekend.

We expected to see a rebalancing, and it’s good to see it now feeding through in to the wholesale prices.

Prices haven’t got back down to the levels that we saw in late February, but at least now are moving in the right direction after the repeated increases last week.

Gas: Gas prices softened yesterday as demand for gas-fired generation fell. This changed occurred despite outages at several key Norwegian gas fields, which were reported to have had minimal impact on supplies.
Power: Power prices fell yesterday mimicking the gas curve, with declines in the further out curve being supported by a weakening carbon market. A strong wind output of 9.9GWs in the prompt helped ease demand for gas-fired generation.
Oil: Oil prices rose yesterday on the sentiment of rising fuel demand, due to increased travel over the summer months. However, further price declines were limited by concerns surrounding the Federal reserve keeping interest rates high.
Carbon (EU ETS): The ICE Dec-24 fell to €74.58/t, likely due to profit taking as the price reached the highs of January. This morning, the contract has regained its momentum and is trading up at €75.42/t at the time of writing.
Carbon (UKAs): The ICE Dec-24 fell to £45.25/t yesterday, after peaking at the highest price since the start of the year. The contract is currently trading at £45.35/t at the time of writing.

#gas #electricity #businessutilities #businessgas #businesselectricity

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