Friday Energy Update 24/11/23

The wholesale market has seen overall light decreases over the last 7 days on all curves other than Day ahead. Decreases attributed earlier in the period to a positive LNG outlook and a slump in oil & carbon prices. A drop in renewable energy output limited the losses here.

The last few days has seen a bit more of a bullish sentiment, which could be attributed to nervousness surrounding further cuts to oil production with the OPEC+ meeting scheduled to take place on the 26th November.

Day ahead is seeing the largest incremental increases at the moment (colder weather supply/demand) whereas prices further out are faring better with light decreases overall. The day ahead increases will only affect contract prices for those that are due imminently or are out of contract.

However, over the last 24 hours the trend has started to change on the longer curves as colder weather starts having more of an impact

In other news

The BBL company announced they will be increasing flows to 90% through their UK-Netherlands interconnector starting from April 2024 and lasting six months.

On Monday the European Commission announced gas storage filling targets that members will be required to reach in 2024, in order to meet 90% full stocks by the 1st of November. 90% is the minimum threshold needed to ensure gas security for winter.

Increases occurring from US LNG supply fears. Gulf Pipeline flows dropped by 54% which caused concern as to possible further disruption to US LNG Export on Tuesday.

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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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