2nd August 2023 Energy Price Alert – UK Gas & UK Electricity

A mixed bag on Tuesday but no significant upward movement on either gas or electricity

Gas: Gas prices settled mixed yesterday. The continued above average output of Renewables leads to less reliance on Gas fired generation. The UK is currently expecting three LNG cargoes by the 8th of August, providing a surplus of supply. 

Power: Power prices tracked the wider energy complex yesterday, namely Gas and Carbon markets. Wind generation remains 20% above average, outputting 8.3GWs/day. 

Crude: Oil prices fell slightly yesterday as opportunistic traders took their profits as Oil prices reached a 3-month high. A strengthening $USD provided bearishness to the market as this makes Oil more expensive for non-currency holding nations. Significant declines in manufacturing activity throughout Europe has raised recession concerns and a decline in demand for oil. 

Carbon (EU ETS): The ICE Dec-23 continued its recent decline and fell to €85.1/t yesterday. Opening soft at €84.85/t today and has fallen further to €83.84/t at the time of writing. 

Carbon (UKAs): The ICE Dec-23 contract continued its bearish trend and closed at £42.14/t. The contract has opened at £41.75/t and remains the same at the time of writing. 

The Procurement Group

Join us...

and 2000+ other CFOs and FDs who are already enjoying our free resources and industry insights.