6th March 2024 Energy Price Alert – UK Gas & UK Electricity

Prices have continued to rise on both wholesale Gas and Electricity, although at a lower rate than seen in recent days.

We don’t expect this to be a long term trend, and expect the reductions to resume in the coming days and weeks.

Gas: Gas prices rose yesterday, especially in the near curve as a decline in wind forecasts has led to the expectation of increased gas demand. However the expected increase in demand was limited due to the forecast of rising temperatures, reducing the amount of gas-fired demand. 
Power: Power prices strengthened yesterday, tracking the wider energy complex, namely carbon and gas markets. Prompt wind generation has been reforecast to 9.6GWs/day, 10% lower than seasonal norms. The Hartlepool nuclear reactor is expected to return online March 9th, and be at full capacity by March 14th. 
Oil: Oil prices were volatile during the session yesterday, but settled weaker than the previous day. Global economic concerns eventually outweighed stricter supply cuts from OPEC+ in Q2. China has yet to propose a fiscal stimulus for its own economy, whilst the US has not signalled a change to interest rates, keeping them higher for now to further curb inflation.
Carbon (EU ETS): The ICE Dec-24 rose to €60.54/t, the highest price since February 8th. The contract has opened softer, likely due to some profit taking and is trading at €58.89/t at the time of writing. 
Carbon (UKAs): The ICE Dec-24 rose to £36.34/t, reversing the weeks previous declines to post a new weekly high. The contract has opened softer this morning, currently trading at £35.85/t.  

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The Procurement Group

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