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GLEG UK Energy Market Update…

UK Energy Market Summary to Friday 1st November 2024

Closing Prices 01.11.2024

British near-term gas prices fell on Tuesday, with the NBP spot dropping by 1.6% to close at 3.6 p/kWh. Above-seasonal temperatures continued to exert bearish pressure on the short-term market. On the forward curve, concerns over potential retaliation from Iran and stability of European supply for the winter provided underlying support for prices. Consequently, the Sum-2025 contract rose by 0.6%, settling at 3.4 p/kWh.

Gas prices fell by 1% to 3.4 p/kWh on Thursday due to mild November temperatures. The Sum-2025 contract stayed at 3.3 p/kWh, with upcoming LNG cargoes for the UK balancing Middle East tensions.

At time of writing, European gas storage levels are 95% full, with the UK 62% full. European gas storage levels have remained above the 5-year average throughout 2024. Over the past week gas has accounted for 43% of the UK generation mix with wind accounting for 17%, solar 2% and nuclear accounting for 14%. Below summarises curve prices as at close of business on Friday.

Curve UK Gas & Electricity Markets
Other Energy Markets

Oil prices rose on Thursday gaining about 1%, supported by improved demand signals from the US and possibly China. Brent crude closed at $73.16 per barrel, while WTI crude ended at $69.26 per barrel.

European carbon prices declined under pressure from falling natural gas prices. The EUA Dec-2024 contract decreased by 1.4%, closing at 64.58 EUR/tonne.

Please contact hello@gleg.co.uk for a more detailed market analysis and expert view on how to navigate your energy procurement strategy through the current market volatility.