UK Energy Market Summary to Friday 4th October 2024
Closing Prices 04.10.2024
British near-term gas prices rose on Tuesday, with the NBP spot gaining more than 2%, closing at 3.2 p/kWh. This rise was primarily driven by geopolitical tensions in the Middle East, despite stable Norwegian gas flows.
A temporary decline on Wednesday was driven by stable Norwegian gas flows, which mitigated the impact of ongoing geopolitical risks. On the forward curve, the Sum-2025 contract decreased by 0.5%, settling at 3.1 p/kWh, with full gas storage levels in Europe continuing to exert downward pressure on prices.
At time of writing, European gas storage levels are 94% full, with the UK 59% full. European gas storage levels have remained above the 5-year average throughout 2024. Over the past week gas has accounted for 23% of the UK generation mix with wind accounting for 37%, solar 4% and nuclear accounting for 15%. Below summarises curve prices as at close of business on Friday.
Curve UK Gas & Electricity Markets
Other Energy Markets
Oil prices rose slightly by 0.4 % on Wednesday as ongoing tensions between Iran and Israel kept markets on edge. Brent crude closed at $73.90 per barrel, while WTI crude settled at $70.10 per barrel.
European carbon prices came under renewed selling pressure on Wednesday. The EUA Dec-2024 contract fell by nearly 2%, closing at 62.60 EUR/tonne, as investment funds increased their short positions.