8th May 2024 Energy Price Alert – UK Gas & UK Electricity

Wholesale Gas and Electricity prices have been bouncing around for the last few days, but the net result has been a small increase as of the market close yesterday. 

The geo-political uncertainty in the Middle East continues to weigh negatively against the market fundamentals which continue to support further reductions.

Winter ’24 has now risen just above £80/MWh, but we expect that to change and at present the volatility is not weighing heavily on retail prices.

Gas: Gas prices rose yesterday, due to a low wind turnout and an unplanned outage at the Barrow gas plant.
Power: Power prices settled mixed yesterday as the near curve rose, tracking the gas market. A full capacity outage at Heysham 2 lasting until 2 June has supported prices further. 
Oil: Oil prices were mixed yesterday. Prices fell in the front month over the continued demand concerns. However, prices rose in the further out months due to the escalating conflict in the Middle East, as a ceasefire is becoming further unlikely contributing to supply risks. 
Carbon (EU ETS): The ICE Dec-24 fell to €70.98/t at the end of yesterday’s session. This morning, the contract has opened at €70.96/t, and is currently €69.84/t.
Carbon (UKAs): The ICE Dec-24 rose yesterday to £37.57/t. This morning, the contract is currently trading at £37.49/t. 

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The Procurement Group

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