Energy Price Cap Decrease: A Missed Opportunity for Greater Savings
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July 9, 2024
Closing prices 05.07.2024
British short-term gas prices fell on Monday, with the NBP spot price closing at 2.7 p/kWh, weighed by weaker demand and rising renewables output. On the forward curve, the gas price for Winter 2024 delivery dropped by 1.4%, ending at 3.4 p/kWh, driven by steady supply and ample storage levels.
British short-term gas prices dropped on Wednesday, with the NBP spot price ending at 2.6 p/kWh, as improving wind power generation and falling demand dragged prices lower. On the forward curve, the gas price for Winter 2024 delivery declined by about 2%, settling slightly above 3.3 p/kWh, weighed by stable LNG and robust gas storage.
At time of writing, European gas storage levels are 79% full, with the UK 47% full. 2023/24 European gas storage levels have ended Winter 23 at record levels. Over the past week gas has accounted for 17% of the UK generation mix with wind accounting for 34%, solar 9% and nuclear accounting for 19%. Below summarises curve prices as at close of business on Friday.
Curve UK Gas & Electricity Markets
Other Energy Markets
Oil prices were supported on Monday by the prospect of US rate cuts, continuing conflict in the Middle East and the risk of hurricane-related supply disruptions. As a result, Brent crude edged 0.2% up at $86.60 a barrel. WTI crude climbed by 2.3% to settle at $83.38 a barrel.
European carbon allowances ended Wednesday with a marginal change following a highly volatile session marked by significant trading volume. The EUA rally post-daily auction seemed to be in response to a further rise in speculators’ net short positions. Consequently, the EUA contract expiring in Dec-2024 added 0.1% at 70.76 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.