GLEG UK Energy Market Update

UK Energy Market Summary to Friday 29th November 2024

Closing Prices 29.11.2024

UK near-term gas prices declined on Tuesday, influenced by a revised weather forecast indicating a milder start to December, with temperatures expected to rise above seasonal averages in Britain. As a result, the NBP spot price fell by 1.4%, closing at 4.0 p/kWh.

Gas prices declined on Wednesday, pressured by milder weather forecasts. Thus, the NBP spot price dropped by 1%, closing at 4.0 p/kWh. On the forward curve, gas prices were also bearish. The NBP Sum-2025 contract eased by over 1%, settling at 3.7 p/kWh, following a ceasefire deal between Israel and Hezbollah.

At time of writing, European gas storage levels are 85% full, with the UK 57% full. European gas storage levels are trending within the 5-year average throughout 2024. Over the past week gas has accounted for 33% of the UK generation mix with wind accounting for 38.5%, solar 1.9% and nuclear accounting for 8.1%. Below summarises curve prices as at close of business on Friday.

Curve UK Gas & Electricity Markets

Other Energy Markets

Oil prices gained ground on Thursday, driven by concerns over escalating tensions in Ukraine. Brent crude climbed to $73.28 per barrel, while WTI crude closed at $69.10 per barrel, both gaining 0.6%.

European carbon prices declined by 1%, hitting a 7-day low. EUAs expiring in Dec-2024 closed at 68.47 EUR/tonne by sustained selling pressure and weaker natural gas prices.

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.