30th July 2024 Energy Price Alert – UK Gas & UK Electricity
As anticipated wholesale Gas and Electricity prices surged on Monday given the prospect of escalation in the Middle East.
As has happened previously we expect this to subside, but it usually takes a few weeks.
We haven’t yet seen any impact in the retail market, but expect that to start today.
Gas: Gas prices rose yesterday as escalation in the Middle East impacted prices and delivery routes. However, gains were limited due to the report of full operations from the US Freeport LNG terminal.
Power: Power prices increased yesterday following gains in the gas and carbon markets, despite UK carbon eventually falling later in the session. An unplanned outage at the East-West interconnector between the UK and Ireland reduced capacity.
Oil: Oil prices fell in the front month as the contract is due to expire this week. The market is focused on the US Federal Reserve meeting due to be held today and tomorrow, leading to minimal movements across the commodity.
Carbon (EU ETS): The ICE Dec-24 continued to gather support yesterday and closed at €68.69/t. The contract is currently trading at €68.17/t.
Carbon (UKAs): The ICE Dec-24 closed at £39.35/t yesterday. This morning the contract opened at £39.33/t and is currently trading at £39.25/t.
