UK Energy Market Summary to Friday 26th July 2024
Closing prices 26.07.2024
British near-term gas prices dropped early last week, influenced by steady storage levels. The NBP spot price closed at 2.5p/kWh, falling by 1.4%. Along the forward curve, the gas price for Winter 2024 decreased by 0.8%, closing at 3.2 p/kWh, as supply concerns were alleviated following the return of US Freeport LNG.
British gas prices gained momentum on Wednesday, with the NBP spot trading 3.7% higher at 2.6 p/kWh. Further out the curve, the gas price for Win-24 delivery increased by 2.5% to 3.3 p/kWh due to weaker Norwegian flows.
At time of writing, European gas storage levels are 85% full, with the UK 53% full. 2023/24 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 17%, solar 9.5% and nuclear accounting for 16%. Below summarises curve prices as at close of business on Friday.
Curve UK Gas & Electricity Markets
Other Energy Markets
Oil prices continued to decrease on Monday amid talks of a ceasefire in Gaza. As a result, Brent crude decreased by nearly 0.3%, closing at $82.40 a barrel, while WTI crude lost over 2%, settling at $78.40 a barrel.
On Thursday, European carbon prices saw their biggest two-month increase, driven by a technical rally, lack of a daily auction, and rising speculative short positions. EUAs expiring in Dec-24 rose by 4% to 68.41 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.