4th January 2024 Energy Price Alert – UK Gas & UK Electricity

Both gas and electricity prices rose on Wednesday, but have not taken back the recent price reductions.

Crucially, Winter 24 gas remains comfortably below 100p/thm.

Gas: Gas prices rebounded from the previous session’s losses yesterday, further pressing recent volatility. In the short curve, an expected cold snap has increased demand expectations which were further exacerbated by a downwards revision of Wind generation. However the UK expects to receive 10 LNG cargoes by January 14th, keeping supplies ample. 

Power: Power prices retraced their previous losses, tracking the Gas market with additional support from an unplanned outage at Didcot B5 CCGT (360MWs) and Wind generation forecast dropping by 1.4GWs in the prompt. 

Oil: Oil prices continued to rise yesterday following political disruptions to Libya’s largest oil field. Although the tension in the Red Sea appears to be contained, the fear of it spreading remains in market sentiment. 

Carbon (EU ETS): The ICE Dec-24 rose to €77.35/t yesterday. Opening at €77.64/t this morning, the contract is currently trading at €77.73/t. 

Carbon (UKAs): The ICE Dec-24 also rose to £45.04/t yesterday. The contract is currently trading at £44.0/t.

#gas #electricity #businessutilities #businessgas #businesselectricity

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