UK Energy Market Summary to Friday 6th December 2024
Closing Prices 06.12.2024
In the UK, near-term gas prices were bearish on Wednesday, with the NBP spot price decreasing by 4%, closing at 4.0 p/kWh. The market was pressured by improved weather conditions, which led to a significant drop in heating demand.
Gas prices remained relatively stable on Thursday, with the NBP spot price dropping by 2% to 3.9 p/kWh, as warm weather and strong winds led to a reduction in gas-fired generation. In the forward market, the gas price for Summer 2025 delivery closed 1% lower at 3.7 p/kWh, thanks to comfortable supply conditions.
At time of writing, European gas storage levels are 82% full, with the UK 59% full. European gas storage levels are trending within the 5-year average throughout 2024. Over the past week gas has accounted for 30% of the UK generation mix with wind accounting for 42%, solar 1.0% and nuclear accounting for 9.1%. 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 fell by 1% on Wednesday. The EUA Dec-2024 contract closed at 67.86 EUR/tonne, influenced by the sharp decline in 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.