UK ENERGY MARKET SUMMARY TO FRIDAY 20TH SEPTEMBER 2024
Closing Prices 20.09.2024
British near-term gas prices rebounded on Tuesday, with the NBP spot price climbing by over 2%, closing at 2.8 p/kWh. The rise was fuelled by geopolitical tensions after missile attacks targeted energy infrastructure in Sumy, Ukraine. On the forward curve, the Win-2024 contract surged by 4%, settling at 3.2 p/kWh, driven by the escalating conflict between Russia and Ukraine and uncertainties surrounding LNG exports from the US.
British gas prices declined amidst Thursday’s session, with the NBP spot falling by nearly 6% to 2.7 p/kWh. This decline was partly attributed to the reduction of maintenance in Norway. However, news reports of geopolitical tensions could add uncertainty to supply confidence.
At time of writing, European gas storage levels are 93% full, with the UK 57% full. European gas storage levels have remained above the 5-year average throughout 2024. Over the past week gas has accounted for 29% of the UK generation mix with wind accounting for 19%, solar 7% and nuclear accounting for 17%. 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 around 1.5%, spurred by escalating tensions in the Middle East. Brent crude settled at $74.88 per barrel, while WTI crude closed at $71.95 per barrel.
European carbon prices fell, mirroring the decline in gas prices. The EUA Dec-2024 contract dropped by around 1%, closing at 62.82 EUR/tonne, or a five-month low.