UK ENERGY MARKET SUMMARY TO FRIDAY 6TH SEPTEMBER 2024
Closing Prices 06.09.2024
British near-term gas prices tumbled on Tuesday, as geopolitical concerns eased. The NBP spot price fell by over 4%, closing at 3.0 p/kWh. Meanwhile, the Win-2024 gas price decreased by 3%, settling at 3.4 p/kWh, due to improved LNG deliveries.
On Friday prices rebounded, driven by reduced Norwegian gas flows. The NBP spot price rose by nearly 1%, closing at 2.9p/kWh. Further on the curve, the Winter 2024 gas contract gained 0.7%, settling at 3.4 p/kWh, amid supply concerns. However, healthy storage levels limited gains.
At time of writing, European gas storage levels are 92% full, with the UK 61% full. European gas storage levels have remained above the 5-year average throughout 2024. Over the past week gas has accounted for 30% of the UK generation mix with wind accounting for 19.3%, solar 4.5% and nuclear accounting for 18%. Below summarises curve prices as at close of business on Friday.
Curve UK Gas & Electricity Markets
Other Energy Markets
Oil prices fell by around 1.5% on Wednesday, as China’s economic struggles and a global oversupply continued to weigh on the market. Brent crude closed at $72.70 per barrel, while WTI crude settled at $69.20 per barrel.
European carbon prices slid for the third consecutive session, pressured by an increase in auction allowances. The EUAs expiring in Dec-2024 fell by 1%, closing at 66.20 EUR/tonne.