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Weekly Wholesale Energy Market Update - UK Energy & Oil Markets - 05/02/2024

Welcome to The Smart Energy Company's definitive guide to the latest trends in the UK energy markets. Our weekly reports provide the insights you need to make informed decisions for your business's energy needs.


Weekly Energy Market Summary

The past week in the UK energy market was marked by significant fluctuations in both gas and electricity prices, influenced by varying weather conditions, LNG supply dynamics, and maintenance activities.


image to show how much the energy market has moved in the last week

 

Weekly Gas and Power Market Review: 29/01/2024 - 05/02/2024


Detailed Price Movements:


  • Start of the Week: On 29/01/2024, gas prices were at 69.50 p/th and electricity at £69.50/MWh. Prices were impacted by updates affecting LNG (liquefied natural gas) supplies and predictions of increased local demand.

  • Midweek Trends: By 31/01/2024, gas prices had risen to 74.90 p/th due to colder weather increasing demand for heating. This was the highest point for gas prices during the week. Electricity prices also increased, reaching £67.00/MWh, affected by less wind for turbines and reduced nuclear power generation.

  • End of the Week: The week ended on 02/02/2024 with gas prices decreasing to 70.00 p/th and electricity rates slightly lower at £57.00/MWh. This reduction reflected the influence of warmer weather and strong winds reducing the need for power from gas.


linear graph to show the flucations in energy wholesale prices in the last 7 days


Current Market Rates

As the new week began on 05/02/2024, gas prices were at 71.25 p/th and electricity at £56.75/MWh. These opening rates reflect the combination of a good supply level, warmer weather reducing the need for heating, and continued strong wind power generation.


Key Influences on the Market:

  • Changes in weather, especially variations in temperature and wind speeds, significantly affected energy demand.

  • The steady supply of gas from LNG, the UK Continental Shelf (UKCS), and Norway helped keep the market balanced.

  • Global political events, like the joint UK/US airstrikes, introduced uncertainty that could affect future market prices.


snapshot of wholesale market movements from this time last week, month and year

Long-Term Trends

Understanding these weekly changes provides a context for predicting future market movements. For businesses planning ahead, it's crucial to consider these dynamics in energy procurement and management strategies.


graph to show last 12 months wholesale market movements

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)

29/01/2024

69.50

69.50

30/01/2024

71.50

63.55

31/01/2024

74.90

67.00

01/02/2024

70.35

61.25

02/02/2024

70.00

57.00

05/02/2024

71.25

56.75

WEEKLY AVERAGE

71.25

62.51

 

Forecast for the Upcoming Week: 05/02/2024 - 12/02/2024


Looking ahead, the market might see further changes due to the expected milder weather, which could lower the demand for heating. The stability of the energy supply and global political situations will be important to monitor. For businesses, especially those nearing the time to renew energy contracts, staying updated on these developments is crucial to securing the best possible terms.


Your Weekly Guide


Our reports are designed to help businesses like yours navigate the complexities of the energy market. Stay informed to make the best decisions when negotiating your next energy contract


 

Oil Market Summary: 29/01/2024 - 05/02/2024


Overview:

This week in the oil market witnessed a series of fluctuations driven by a mix of economic indicators, geopolitical tensions, and weather-related disruptions. Here's a breakdown of the key events and their impact on oil prices.


  • Beginning of the Week: Oil prices saw an increase at the week's start, reaching their highest in nearly two months on positive U.S. economic growth and signs of Chinese economic stimulus. Brent crude futures rose to $83.55 a barrel, and WTI crude to $78.01, buoyed by larger-than-expected reductions in U.S. crude stockpiles and Middle East supply concerns.

  • Mid-Week Movements: The following days saw prices experiencing volatility. On 30/01, concerns over China's property sector and demand worries led to a decline in prices. However, by 31/01, prices rebounded slightly due to higher global economic growth forecasts and escalating Middle East tensions.

  • End of the Week: Towards the week's end, prices settled lower amid news of a ceasefire between Israel and Hamas, a large U.S. refinery shutdown due to a power outage, and adjustments in market expectations due to U.S. jobs data hinting at steady interest rates.


Key Influencing Factors:

  • Economic Indicators: U.S. economic data and Chinese economic policy played significant roles in shaping market expectations and demand forecasts.

  • Geopolitical Tensions: Developments in the Middle East, including conflict escalations and ceasefire reports, alongside sanctions on Venezuela, influenced market sentiments.

  • Weather Conditions and Supply Disruptions: Severe cold weather in the U.S. affecting crude production, coupled with supply changes in Libya and Norway, impacted oil prices.


Market Outlook:

Looking ahead, the oil market is expected to remain sensitive to geopolitical developments, economic indicators from major economies, and any changes in supply dynamics. Market participants should closely monitor these factors as they are likely to influence price movements in the near term.


 

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.


image of a happy woman here, along with text highlighting the average savings per site in 2023.

 

Get Your Free Business Energy Quote Today


For tailored advice and to understand what current market rates mean for your business, contact us for a free quote.





Or Call us on 0151 459 3388


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