5th January 2024 Energy Price Alert – UK Gas & UK Electricity

Both gas and electricity prices rose on Thursday, as a result of forecasted low temperatures coming in over the coming weeks.

Demand from China remains strong, but US production of gas and oil remains at all time highs, meaning that there is no great price pressure at the moment.

Of note is that W24 still remains below the key 100p/thm psychological level for gas and electricity.

Wishing you a good weekend.

Gas: Gas prices edged upwards yesterday following an upcoming cold snap. The impact of which was felt more strongly on the front contracts of the market. An expected decline in Wind generation has further supported price gains in the near curve. 

Power: Power prices continued to track the underlying Gas market yesterday. Revisions in forecasted Wind generation will increased demand for fuel-fired generation, causing prices to rise. Nuclear generation has so far been 1.2GWs/day lower than average for January, likely due to the ongoing outages at Heysham 1 & 2, which are due to return January 24th and 16th respectively. 

Oil: Oil prices continue to prove volatile as supply concerns from the tensions throughout the Middle East. Freight have already begun re-routing around South Africa, supporting price gains. However demand is falling with Europe’s economic data showing a contraction over December, and Germany’s rising inflation.

Carbon (EU ETS): The ICE Dec-24 fell to €75.82/t yesterday. Opening at €75.89 /t this morning, the contract is currently trading at €76.60/t. 

Carbon (UKAs): The ICE Dec-24 also fell to £44.17/t yesterday. The contract is currently trading at £43.76/t.

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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