GLEG UK Energy Market Update…

UK Energy Market Summary to Friday 17^th May 2024

Closing prices 17.05.2024

On Wednesday, British near-term gas prices experienced a slight increase, driven by upcoming maintenance scheduled for next week in Norway. Hence, NBP spot settled 1.4% higher at 2.4 p/kWh.

British gas prices gained ground on Thursday due to Norwegian maintenance scheduled next week. As a result, NBP spot increased by about 3% to settle at 2.5 p/kWh. Further out the curve, the gas price for Win-24 delivery rose by 1.3% to close at 3.2 p/kWh. The risk of supply disruptions stemming from Middle Eastern and Russia-Ukraine geopolitical issues, as well as from reduced LNG supplies, lent support to prices.

At time of writing, European gas storage levels are 66.53% full, with the UK 42% full. 2023/24 European gas storage levels have ended Winter 23 at record levels. Over the past week gas has accounted for 32% of the UK generation mix with wind accounting for 16%, solar 9% 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 on Tuesday as signs of lower consumption in the US and a stronger dollar offset the risk premium associated with the Middle East situation and bullish OPEC outlook. As a result, Brent crude stood at $82.38 per barrel, while WTI crude settled slightly above $78 per barrel, with both contracts falling by more than 1% day-on-day.

On Wednesday, European carbon prices retreated, influenced by consistent selling that exerted continual pressure. The weekly Commitment of Traders data revealed yet another marginal reduction in investment funds’ net short position. As a result, EUAs expiring in Dec-24 declined by 1% to stand at 69.46 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.