Friday Energy Update 1/12/23

The wholesale market has decreased overall in the last 7 days despite freezing temperatures surging demand above seasonal norms.

This was mainly due to a busy LNG schedule and plentiful supply – the below average temperatures for this time of year only preventing further downside.

However, 14-day demand models show that cold weather will continue to drive gas demand above seasonal norms until at least 14th December and an LNG Tanker due to go to China has become stuck at an Australian port from the loss of power. This terminal can only accommodate one vessel at a time, so several shipments have been delayed, potentially tightening global LNG supply in the short term.

This has lifted the market mildly today – Friday 1st December.

In other news

The European Commission has proposed an extension, by 12 months, of the emergency measures brought in last year due to Russia’s invasion of Ukraine. This includes the MCM (Market Correction Mechanism), designed to artificially limit energy prices in the event of an excessive price spike.

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We are currently saving our clients, up to 60% on their utility bills. Please feel free to contact our Business Efficiency Team, on 01273 424904. So, we can provide you with recommendations around reducing your energy costs.

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