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

After the significant drops on Friday and Tuesday, wholesale Gas and Electricity prices were broadly stable on Wednesday.

Given the market fundamentals, we expect reductions to continue in the weeks ahead.

Gas: NBP contracts throughout the curve gained slightly yesterday. As of 3.00pm London time yesterday, Linepack was expected to end the day 17.5mcm short. Wind generation is forecast to reach 10.7GW today, limiting gas demand and likely pushing down prices.
Power: Power prices also incurred subtle gains yesterday. Wind power throughout the remainder of this week, and next, is forecast to be above seasonal norms by 10-20%. The UK currently has two nuclear reactors (1.3 GW of capacity) offline due to planned outages.
Oil: After a bullish morning, prices began to fall off slightly yesterday afternoon, with the market believing that the continuation of OPEC+ supply cuts have already been factored into prices. The US driving season started last Monday, a period in which we usually see elevated gasoline demand.
Carbon (EU ETS): The ICE Dec-24 fell to €73.86/t, yesterday. This morning, the contract is trading up at €74.09/t at the time of writing.
Carbon (UKAs): The ICE Dec-24 closed at £45.02/t yesterday. The contract is currently trading at £45.43/t at the time of writing.

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The Procurement Group

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