7th March 2024 Energy Price Alert – UK Gas & UK Electricity

Wholesale gas and electric prices dropped on Wednesday, as traders closed out their untenable positions.

We expect the downward trend to continue now through the Summer.

Looking further out the curves are very very flat up to 5 years. We expect therefore that the usual trend of spot prices being more favourable will be restored and it is therefore not in anyone’s interests to lock-in long term contracts.

Gas: The bullishness in gas prices so far this week subsided yesterday, with most of the gains starting to reverse their positions. Market fundamentals are in a good position moving out of winter, with no colder weather forecast so far. 
Power: Power contracts were weighed upon by weakening NBP prices during yesterday’s session. Temperatures over the next fortnight are set to remain within seasonal norms, whilst wind generation for the remainder of this week is expected to stay around 13.9GW.
Oil: Tight market conditions continue to help prices rally, offsetting Chinese economy concerns. All eyes will be on new Chinese economic data, which will release this Saturday. 
Carbon (EU ETS): The ICE Dec-24 closed at €59.23/t. The contract is trading at €59.35/t at the time of writing.  
Carbon (UKAs): The ICE Dec-24 closed at £36.10/t. The contract is currently trading at £35.98/t.

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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