3rd January 2024 Energy Price Alert – UK Gas & UK Electricity

Prices continued to drop significantly as the new year started and we expect the trend to continue, albeit not at these rates.

Gas: Gas prices fell across all contracts yesterday. Gas storage has remained high across the UK and Europe, with supplies looking healthy and demand not meeting expectations. UK Gas demand was forecast to be 40MCM under seasonal norms, mainly due to the mild temperatures.
Power: Power prices tracked the NBP losses from the front month onwards but gained in the front week due to an unplanned nuclear outage. Although Wind generation is forecast to reach 11.4GWs/day over the next week, this is 20% lower than seasonal norms
Oil: Oil prices were volatile throughout yesterday, the first trading session of the year. A clash between the US and Yemen militants in the Red Sea has raised concerns about potential supply concerns through the Suez Canal. This may force tankers to route around South Africa, delaying and raising prices. 
Carbon (EU ETS): The ICE Dec-24 fell to €75.96/t yesterday. Opening at €76.28/t this morning, the contract is currently trading at €77.18/t. 
Carbon (UKAs): The ICE Dec-24 also fell to £42.53/t yesterday. The contract has strongly opened this morning and is currently trading at £45.50/t.
The Procurement Group

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