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

On Thursday, gas gave up all of the very small increases in the last few days and electricity stayed broadly neutral.

Prices continue to be around the 20p/kWh mark for electricity. with gas remaining stubbornly at 7p/kWh. 

In terms of generation, as expected due to the storms, the price to produce electricity has dropped below £60/MWh, with renewables contributing 45% in the past week.

Have a good weekend.
Gas: Gas prices fell for most contracts yesterday. Near curve prices were pressured by mild and windy weather, reducing the need for Gas fired demand. Further out contracts were influenced by the uncertainty surrounding the LNG production outages in the US. 
Power: Power prices were mixed yesterday. High Wind output of 17.7GWs pressured prices on the near curve, whilst unplanned nuclear reactor outages and rising UK Carbon costs supported prices. Wind generation throughout January averaged 12.2GWs/day, 2.5GWs/day higher than the previous 5-year average. 
Oil: Oil prices eventually fell yesterday after starting the session on a rally amidst hopes of a Global demand recovery, however the gains were reversed due to speculations of Israel agreeing to a ceasefire proposal. US interest rates were left unchanged, and the Bank of England wanted evidence of controlled inflation before reducing their interest rates.
Carbon (EU ETS): The ICE Dec-24 contract fell to €62.19/t yesterday. Find some support this morning, the contract is currently trading at €62.70/t. 
Carbon (UKAs): The ICE Dec-24 continued to rise to £36.13/t yesterday. Opening higher today at £36.25/t, the contract has built momentum and is currently trading at £36.81/t. 

#gas #electricity #businessutilities #businessgas #businesselectricity

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