GLEG UK Energy Market Update…

UK Energy Market Summary to Friday 12^th July 2024

Closing prices 12.07.2024

On Monday, British near-term gas prices saw a decrease, with the NBP spot price dropping by more than 4% to 2.5 p/kWh, as consistent flows from Norway balanced potential LNG supply uncertainties. Along the forward curve, the gas price for Winter 2024 delivery decreased by 1.5%, reaching 3.3 p/kWh, impacted by abundant supply and favourable storage reserves.

On Wednesday, British short-term gas prices declined, with the NBP spot price closing 1% lower at 2.4 p/ kWh, on the back of steady Norwegian flows. On the forward curve, the gas price for Winter 2024 delivery extended their fall, decreasing by approximately 1.4% to settle at 3.2 p/ kWh, influenced by comfortable storage levels.

At time of writing, European gas storage levels are 81% full, with the UK 48% full. 2023/24 European gas storage levels have ended Winter 23 at record levels. Over the past week gas has accounted for 26% of the UK generation mix with wind accounting for 23%, solar 7% and nuclear accounting for 17%. Below summarises curve prices as at close of business on Friday.

Curve UK Gas & Electricity Markets

Other Energy Markets

Oil prices lost ground on Monday due to profit-taking and gloomier-than-expected US economic data published last week, raising concerns about the level of demand in the country. Consequently, Brent crude stood at $85.75 a barrel, while WTI crude closed at $82.33 a barrel, both contracts declining by 1%.

European carbon prices fell for the third consecutive session on Wednesday after weekly position data indicated that investment funds had increased their holdings during the previous week’s 4.3% price rally. As a result, the EUA contract expiring in December 2024 decreased by about 1%, ending slightly below 68 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.