UK Energy Market Summary to Friday 24th June 2022

Closing prices 24.06.2022


UK energy markets saw more volatility last week as reduced Russia flows via Nord Stream 1 saw a large increase in front month and winter-22 prices. Whilst Europe are accusing Putin of using Gas supply as a political weapon, Moscow has blamed reduced flows on pipeline maintenance. Whatever the reason for the reduced flows the market is becoming increasingly nervous about winter gas supplies given the recent reduction in flows from Russia.

Away from Russia, British near-term gas prices moved upwards on Tuesday, with NBP spot spiking by 19.7% to 6.7p/kWh, spurred by maintenance work on Norwegian infrastructure, stronger gas-for-power demand due to low wind generation and Germany moving onto phase 2 of their emergency gas plan. Along the forward curve, the gas price for Winter 2022 delivery soared to close the week at 11.3p following strong oil and carbon prices.


Prices for Brent crude, the international benchmark, and West Texas Intermediate crude have each slumped about 11% after hitting highs above $120 a barrel in early June. Brent and WTI on Friday were trading with handles of $108 and $109, respectively. Oil prices remain sharply higher on a year-to-date basis because of tight crude supply globally while demand for the commodity have spiked up as COVID infection rates decline.

Mounting fears of a recession have sent crude prices to their second consecutive weekly decline, but they remain above $100 per barrel amid still-high demand and constrained supply, while inflation, hawkish central banks and war still loom.

Carbon prices increased last week due to European countries announcing an increase in coal-fired power generation to balance a potential reduced supply of gas through winter.  This will result in a higher demand for carbon credits and a higher price.

Please contact for a more detailed market analysis and expert view on how to navigate your energy procurement strategy through the current market volatility.