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UK Monthly Energy Market Review: April 2024 Gas & Power Trends

Monthly Energy Market Overview: April 2024


April 2024 saw noticeable changes in the prices of gas and electricity. These changes were driven by factors such as supply adjustments, maintenance activities, and weather conditions, as well as important global events.


Monthly Wholesale Market Update banner showing a 0.90% increase in the Gas Market and a 23.44% decrease in the Electric Market, with the Smart En. Co. logo prominently displayed.

Key Events and Trends:


Early Month Supply Stability (2nd to 5th April):

  • Gas Prices: Prices fell from 65p per therm to 61.75p. This was mainly due to a decrease in demand and strong supply from Norway and local sources. There was also no maintenance work planned which kept the supply steady.

  • Electricity Prices: Followed a similar pattern as gas, mainly because gas is a major source for generating electricity.


Impact of International Events (15th to 18th April):


  • Gas Prices: Increased significantly to 80.75p per therm by the 18th. This rise was affected by a conflict between Iran and Israel, which raised concerns about supply disruptions.

  • Electricity Prices: Saw a sharp fall on the 18th to 44.00 £/MWh, partly due to improved wind generation reducing the need for gas-fired power.

End-of-Month Adjustments (25th to 30th April):


  • Gas Prices: Peaked at 78.00p per therm on the 25th due to unplanned maintenance affecting supply, but then declined to 69.00p by the end of the month.

  • Electricity Prices: Showed a decreasing trend alongside gas, closing at 64.40 £/MWh.


 

A Picture Worth a Thousand Words


In April 2024, the gas prices observed a fluctuating trend, opening at 65.00p per therm and closing slightly higher at 69.00p per therm by the end of the month, marking an increase of 4.00p. The electricity prices also followed a similar trend, starting at 60.50 £/MWh and ending at 64.40 £/MWh, reflecting an increase of 3.90 £/MWh. On average, gas prices stood at approximately 72.04p per therm, while electricity prices averaged around 58.76 £/MWh for the month. These price movements were influenced by a variety of factors including supply dynamics, demand fluctuations, and broader geopolitical events, highlighting the need for strategic energy management to navigate such volatility.


graph to show the last 6 months wholesale market movements for April 2024

Understanding Market Dynamics Over Time:

To further understand how the energy market has evolved, the infographic below compares current prices to historical data. On the 1st of May 2024, electricity prices are noted at 64.40 £/MWh and gas prices at 69.00 pence per therm. This snapshot provides a clear comparison against price movements from the previous day, week, month, and year.


Notably, electricity prices have seen a significant decrease of 30.00% compared to the same time last year, reflecting broader market trends and possibly increased supply or reduced demand. In contrast, gas prices have decreased by 20.64% over the same period, highlighting different factors influencing the gas market. These comparisons are crucial for businesses looking to forecast future costs and budget effectively, especially in a volatile market.

snapshot of daily, weekly month and yearly comparison for wholesale market movements
 

Energy Market Averages

DATE

GAS (pence per therm)

ELECTRIC (£ per MWh)

Last 7 Days

72.05

68.95

Last Month

71.83

59.46

Last Year

81.67

79.05

Forecast for May 2024: 

Looking ahead, we anticipate a general stabilisation of prices, with potential for slight decreases as temperatures warm up and maintenance issues resolve. However, geopolitical tensions remain a wildcard that could affect market dynamics.


 

Last 12 month market movements


As we examine the broader trends, this graph provides a retrospective look at the last 12 months in the monthly energy market. It charts the day-ahead wholesale prices for gas and electricity, illustrating the volatility and trends that have shaped the market over the year.

graph to show last 12 months wholesale market movements
 

Oil Market Summary for April 2024:


In April 2024, the oil market exhibited significant volatility, influenced by geopolitical tensions, OPEC+ decisions, and changes in U.S. economic indicators. Here are the key trends and fluctuations:


  • Starting Price and Ending Price:

  • Brent Crude: Opened the month at $87.48 per barrel and closed at $88.70 per barrel.

  • WTI Crude: Began at $83.17 per barrel and ended at $83.17 per barrel.

  • Highest and Lowest Prices:

  • Brent Crude reached its monthly high at $91.17 per barrel and dipped to a low of $87.11 per barrel.

  • WTI Crude peaked at $86.91 per barrel and had its lowest at $82.69 per barrel.

  • Significant Changes:

  • Prices surged in early April due to ongoing attacks on Russia’s energy infrastructure and OPEC+ maintaining production cuts.

  • Mid-month, prices briefly declined due to ceasefire talks in the Middle East but rebounded as talks stalled.

  • The month concluded on a relatively stable note with slight decreases due to eased geopolitical tensions and strong U.S. economic data.

  • Average Prices for the Month:

  • Brent Crude: Approximately $89.25 per barrel.

  • WTI Crude: Around $84.50 per barrel.

graph to show oil market movements over the month of April 2024

Commentary:

April 2024 was marked by heightened volatility in the oil markets, driven largely by geopolitical factors including Middle Eastern conflicts and actions impacting Russian fuel output. OPEC+'s steady production cuts alongside U.S. economic growth contributed to the price fluctuations seen throughout the month. Moving forward, market participants should keep a close eye on geopolitical developments and OPEC+ decisions, as these factors are likely to continue influencing price movements.


 

Understanding the energy market can be complex, but it's crucial for making informed decisions about your energy needs. That's where we come in. At The Smart Energy Company, we're committed to helping you navigate the energy market with ease. Whether you're looking to renew your energy contract or switch providers, we're here to help.


Don't miss out on potential savings and better energy deals.




For more information or a detailed energy quote, contact us at 0151 459 3388. Let us empower your future with smarter energy solutions



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