UK ENERGY MARKET SUMMARY TO FRIDAY 16TH AUGUST 2024
Closing Prices 16.08.2024
British near-term gas prices extended their upward trend on Monday, with the NBP spot price climbing by 4% to 2.9 p/kWh, driven by increased gas-for-power demand due to rising temperatures. However, along the forward curve, the Win-2024 gas price edged 1% lower, closing at 3.8 p/kWh, as reassuring storage levels across Europe provided some relief.
British near-term gas prices plummeted on Wednesday, with the NBP spot price dropping by nearly 6%, to end at 2.7 p/kWh. This decrease was attributed to stable Norwegian flows. Along the forward curve, the gas price for Win-2024 remained relatively unchanged, closing at 3.8 p/kWh due to healthy storage levels.
At time of writing, European gas storage levels are 89% full, with the UK 62% full. European gas storage levels have remained above the 5-year average throughout 2024. Over the past week gas has accounted for 18% of the UK generation mix with windaccounting for 29%, solar 9% and nuclear accounting for 20%. Below summarises curve prices as at close of business on Friday.
Curve UK Gas & Electricity Markets
Other Energy Markets
Oil prices eased on Wednesday, as Iran is potentially delaying retaliation against Israel pending a Gaza ceasefire. Consequently, Brent crude decreased by just over 1%, to end at $79.76 a barrel, while WTI crude fell by nearly 2%, to settle at $76.98 a barrel.
European carbon prices edged higher on Wednesday, driven by investment funds ramping up purchases ahead of the September compliance deadline. Consequently, EUAs expiring in Dec-2024 rose by nearly 1%, closing at 71.87 EUR/tonne.