UK Energy Market Summary to Friday 22nd July 2022

Closing prices 22.07.2022

UK Gas & Electricity Markets

The beginning of last week saw markets anticipating whether the Nord Stream 1 pipeline would come back online following scheduled maintenance. Russian flows did come back online as scheduled on 21st July, but only at 40% capacity which are similar levels compared to before the Nord Stream 1 was offline.

Tuesday saw Gas spot prices increase, recovering from losses on Monday due to a reduction in Norwegian flows. The bullish sentiment was supported by Russia’s Gazprom notice to Germany’s Uniper of force majeure. The NBP spot gas price rocketed by 38.1% to settle at 9.1p/kWh on Wednesday due to lower North Sea gas flows and higher gas-for-power demand amid lower-than-expected renewable generation in the UK.

Strong LNG arrivals contributed to a 10.6% decline in the NBP spot gas price on Friday, trading 8.7p/kWh. The price for Win 2022 delivery surged by 2% to settle at 13.6p/kWh, amid a very unstable current supply context on the market.

Other Energy Markets

Crude oil prices fell on Friday, weighed by worries about slowing global demand at a time when many countries are fighting inflation brought on by rising energy and food prices. Thus, Brent crude ended 0.6% lower at $103.20 a barrel. WTI crude diminished by 1.7% to settle at $94.70 per barrel.

EUA prices fell below technical support levels, following the announcement of the EU’s gas consumption reduction strategy and the buildup of bearish fundamental signs. As a result, EUAs expiring in Dec22 plummeted by 2.3% to settle at 76.30 EUR/tonne, posting the biggest weekly loss since early March.

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