Friday Energy Update 26/1/24

The decrease trend stalled at the beginning of this week due to severe weather events preventing some imports. A freezing weather event in Southern US delaying or cancelling some cargoes into Europe and four vessels into the uk were delayed on Tuesday due to the storms. This should only be short term however and the market held firm with very small fluctuation in spite of this due to increased wind-for-power generation and a weakening wider energy complex.

Today the decreases took hold again cancelling out the mild fluctuations during the week on the back of less demand, potentially due to the milder weather.

Energy Crisis 2?

Whilst the wholesale market looks to be on the mend, it is worth bearing in mind that the tensions in the Red Sea are causing a tight rope scenario currently - putting further recovery in jeopardy. So far it has caused increased inflation and rising oil prices.

On the gas (and subsequently electricity) front in the uk a strong supply dynamic inc a surge in renewables entering the grid, along with high European storage levels have assisted to bring the market into a bearish territory however if the conflict escalates then this is at risk. In the ‘worst case’ scenario the treasury has reported to model an outcome of a 25% rise in gas prices as it stands.

We are currently tracking the market for our care home clients that are due to renew this year so that if this situation escalates then we can bring it to their attention straight away to consider how they need to react. We can secure rates up to 12 months in advance of current agreements ending. This service can potentially save care homes thousands by fixing to avoid the volatility, swings and potentially signing in at the wrong time (peaks of increases for example) from being blind to the market position.

If you would like us to monitor this for you, and keep you updated, then please let us know using the contact information below.

Get in touch

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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