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Weekly Wholesale Energy Market Update - UK Energy & Oil Markets - 02/10/2023

Your Weekly Guide to UK Energy Markets


image to show the direction of wholesale market movements from last week

Welcome to The Smart Energy Company's Weekly Wholesale Energy Market Report, your go-to source for the latest insights and updates on UK energy markets. As an energy brokerage company, we understand the importance of staying informed about the changing trends in the energy market. That's why we provide these weekly market reports, to help businesses like yours make informed decisions when negotiating your next energy contract.

 

Weekly Wholesale Energy Market Report: Gas & Power Markets


Week Ending on 02/10/2023

This week, the energy markets experienced a series of ups and downs, influenced by a variety of factors like weather, supply issues, and global events. Here's a detailed look at how the week unfolded:


Start of the Week:

The week kicked off on 25th September with gas prices at 90.00p/th and electricity prices at £60.25/MWh.


Midweek Movements:

By the 27th of September, gas prices had increased to 101.50p/th, a rise of about 13%, while electricity prices dropped to £77.50/MWh. The increase in gas prices was likely due to supply constraints, while the drop in electricity prices could be attributed to increased wind energy production.


Week's End:

The week wrapped up on 2nd October with gas prices at 112.25p/th, a significant increase of about 25% from the start of the week. Electricity prices also rose to £97.00/MWh, a jump of about 61%.


Key Points:

  • Gas Supply: Fluctuations in gas supply had a significant impact on gas prices this week.

  • Weather: Changes in weather conditions had an impact on both gas and electricity prices.

  • Global Events: Ongoing issues like strikes in Australia and fuel export bans in Russia added some unpredictability to the market.

Graph of the Last Week's Movements:


Let's take a visual look at the past week's gas and power market movements


graph to show wholesale market movements over the last week
Snapshot of wholesale market movements

Forecast for the Upcoming Week:

For the coming week, we expect the gas and electricity markets to stay relatively stable. Any changes are likely to be influenced by the return of Norwegian gas production and a slight increase in local energy use, balanced out by stronger winds reducing the need for gas-powered electricity.

 

Table of the Movements on Each Day in the Last Week:


Here's a detailed breakdown of the daily changes in gas and electric prices over the past week:

DAY AHEAD PRICES

Gas (pence per therm)

Electric (£ per MWh)

25/09/2023

112.25

97.00

26/09/2023

100.50

93.00

27/09/2023

98.99

67.50

28/09/2023

101.50

77.50

29/09/2023

95.88

94.00

02/10/2023

90.00

60.25

WEEKLY AVERAGE

99.85

81.54

 

Weekly Oil Market Summary:

The week saw a rollercoaster of oil prices influenced by various factors, including supply constraints, interest rates, and geopolitical events. The week started with Brent futures at $93.27 a barrel and WTI at $90.03 a barrel, both showing promise due to extended production cuts by Saudi Arabia and Russia. However, the mood shifted midweek when the U.S. Federal Reserve maintained its hawkish stance on interest rates, causing some downward pressure on prices. Russia's adjustments to its fuel export ban and U.S. crude stock changes added more variables to the equation. By week's end, Brent futures settled at $95.31 a barrel, while WTI closed at $90.97 a barrel.


Forecast for the Upcoming Week:

The oil market in the coming week is expected to be influenced by a mix of supply and demand factors. On the supply side, the market will be closely watching Russia's fuel export policies and any changes in production cuts from OPEC+. On the demand side, the focus will be on the potential impact of interest rate hikes and the start of refinery maintenance season. Additionally, investors should keep an eye on U.S. oil rig counts and any geopolitical events that could disrupt supply.

 

12-Month Graph to Show the Movements Over the Last Year


Now, let's zoom out and take a look at the long-term trends in the energy market over the past year:


graph to show last 12 month wholesale market movements

 

Stay Updated with Our Weekly Market Reports


Check our weekly market reports regularly to stay updated on the latest UK energy market trends. This equips you with the knowledge to capitalise on savings opportunities and make smart contract renewal decisions for your business.


 

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