National Grid Agrees To Sell ESO To UK Government For £630m…
September 13, 2024UK Will Be Europe’s Floating Offshore Wind Hub By 2030
September 17, 2024UK Energy Market Summary to Friday 13th September 2024
Closing Prices 13.09.2024
British near-term gas prices dropped sharply on Tuesday, plunging by over 4% to close at 2.9 p/kWh, amid easing geopolitical tensions in the Middle East and Eastern Europe. On the forward curve, the Winter-24 contract lost nearly 5%, settling at 3.3 p/kWh, as the risk of supply disruption diminished with the US hurricane moving away, reducing threats to LNG exports.
On Thursday gas prices dropped by over 3% on Thursday, with the NBP spot price closing at 2.9 p/kWh, driven by weaker demand. Along the forward curve, the limited impact of Hurricane Francine on LNG export plants in Louisiana weighed on the Win-2024 contract, which fell by nearly 3%, settling at 3.2 p/kWh.
At time of writing, European gas storage levels are 93% full, with the UK 58% full. European gas storage levels have remained above the 5-year average throughout 2024. Over the past week gas has accounted for 20% of the UK generation mix with wind accounting for 36%, solar 7% and nuclear accounting for 18%. Below summarises curve prices as at close of business on Friday.
Curve UK Gas & Electricity Markets
Other Energy Markets
Crude oil prices continued to hover near their lowest levels in over two years, losing around 4%, pressured by OPEC’s downward revision of the global demand outlook. Brent crude dropped to $69.19 per barrel, while WTI crude settled at $65.75 per barrel.
European carbon allowance prices also declined on Thursday, reflecting a weaker gas market and a lack of momentum among traders to push prices higher. The benchmark EUA Dec-2024 contract fell by 1.4%, closing at 65.45 EUR/tonne.