UK launches review of British electricity market
July 21, 2022
UK Energy Market Summary to Friday 29th July 2022
August 1, 2022
Closing prices 22.07.2022
UK Gas & Electricity Markets
The beginning of last week saw markets anticipating whether the Nord Stream 1 pipeline would come back online following scheduled maintenance. Russian flows did come back online as scheduled on 21st July, but only at 40% capacity which are similar levels compared to before the Nord Stream 1 was offline.
Tuesday saw Gas spot prices increase, recovering from losses on Monday due to a reduction in Norwegian flows. The bullish sentiment was supported by Russia’s Gazprom notice to Germany’s Uniper of force majeure. The NBP spot gas price rocketed by 38.1% to settle at 9.1p/kWh on Wednesday due to lower North Sea gas flows and higher gas-for-power demand amid lower-than-expected renewable generation in the UK.
Strong LNG arrivals contributed to a 10.6% decline in the NBP spot gas price on Friday, trading 8.7p/kWh. The price for Win 2022 delivery surged by 2% to settle at 13.6p/kWh, amid a very unstable current supply context on the market.
Other Energy Markets
Crude oil prices fell on Friday, weighed by worries about slowing global demand at a time when many countries are fighting inflation brought on by rising energy and food prices. Thus, Brent crude ended 0.6% lower at $103.20 a barrel. WTI crude diminished by 1.7% to settle at $94.70 per barrel.
EUA prices fell below technical support levels, following the announcement of the EU’s gas consumption reduction strategy and the buildup of bearish fundamental signs. As a result, EUAs expiring in Dec22 plummeted by 2.3% to settle at 76.30 EUR/tonne, posting the biggest weekly loss since early March.
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.