30th January 2024 Energy Price Alert – UK Gas & UK Electricity

On Monday, for the first time in a while electricity prices dropped while gas prices rose. Both were marginal and will have no effect on retail prices.

Winter 24 gas remains below 90p/thm and we expect the current uncertainty to be removed from the market in the coming days.

That said, of note, is that a significant LNG cargo was rerouted to Chile form the UK.

Gas: A rise in gas demand during yesterday’s session, combined with a decline in Norwegian pipeline supplies helped pressure NBP prices. Out on the curve, prices look to have risen to attract LNG to Britain following the re-routing of the 174000cbm “Malaga Knutsen” to Chile. 
Power: Power contracts fell throughout yesterday as key fundamentals pressured the market. Wind generation for week 5 has been revised upwards 1.9GW resulting in an average output of 16.9GW, ~20% above seasonal norm.
Oil: Oil prices fell yesterday. Chinese demand uncertainty continues to play a massive role in the market, following the liquidation of one of China’s main property firms Evergrande. A strong USD added further pressure.
Carbon (EU ETS): The ICE Dec-24 contract fell steeply to €61.78/t yesterday. This morning the contract is currently trading at €61.93/t. 
Carbon (UKAs): The ICE Dec-24 fell to £31.48/t yesterday. The contract is currently trading at £32.35/t. 

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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