2nd April 2024 Energy Price Alert – UK Gas & UK Electricity

Wholesale gas and electricity prices continued to drop on Thursday as anticipated.

We expect these price drops to continue throughout the summer with the odd exception when there is an event.
Gas: An increase in wind generation pressured NBP prices at the culmination of last week. An over-suppled grid and low gas fired demand further fuelled bearishness. As the markets opened back up today, gas contracts are currently trading below last week’s close.
Power: Power prices reacted in line with the wider energy complex at last week’s conclusion. Wind output has been revised and is now forecast well above average through until the conclusion of week 15. Like NBP, power prices this morning are trading down on last week’s close.
Oil: Prices rallied at the end of last week, despite US inventory data, proving bearish from Wednesday. OPEC+ meet this week, and it’s likely a topic of discussion will be geopolitical tensions, which have been adding a risk premium to prices through Q1.
Carbon (EU ETS): The ICE Dec-24 closed at €61.80 last week, slightly higher than the previous week. After a busy start to the morning, the contact is currently trading down at €59.52/t.

Carbon (UKAs):  The ICE Dec-24 closed at £37.40/t last week. Opening lower today the contract is currently trading at £35.15/t.

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The Procurement Group

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