9th October 2023 Energy Price Alert – UK Gas & UK Electricity

Prices were broadly stable on Friday but we have already seen increased turbulence today as a result of the events in the Middle East over the weekend.  While there is no direct link traders react to uncertainty.

Gas: Gas prices settled mixed at the conclusion of last week. An unplanned outage at the Norwegian plant of Kvitebjorn, provided bullish fundamentals to near curve pricing. Britain imported 0.35m tonnes of LNG in September, down 80% from the same month last year, showing the UK was near capacity for storage. 
Power:  Power Prices were mixed last Friday. Temperatures are forecast to be 1-3 degrees above seasonal norms, limiting demand for heating, whilst Wind generation is forecast to produce 13.3GWs/day, 20% above norms.  
Crude: Oil prices were volatile last Friday as they reached an overall weekly loss position. Investors were concerned that the high interest rates across the US and Europe would have to remain in place longer than originally planned, as consumer purchasing was down across many OECD nations. 

Carbon (EU ETS): The ICE Dec-23 fell to €80.46/t on Friday. The market opened this morning at €80.32/t and is trading at €81.33/t at the time of writing.  
Carbon (UKAs): The ICE Dec-23 rose to £43.83/t last Friday. The contract is currently trading at £43.5/t at the time of writing. 
The Procurement Group

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