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Weekly Wholesale Energy Market Update - UK Energy & Oil Markets - 07/05/2024

Welcome to our 'Weekly Energy Market' update, where we dissect the latest trends and changes from 29th April to 07th May 2024. Your guide through the fluctuations of the last week: revealing trends, insights, and forecasts in the UK energy and oil markets.

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

Weekly Energy Market At A Glance


Gas and Electricity Price Movements:


  • Gas Prices: This week saw a gradual increase in gas prices from 69.00 pence per therm at the start of the week to a peak of 78.48 pence per therm by Tuesday. The rise was primarily driven by tightening supply conditions and increased demand as temperatures fluctuated throughout the week.

  • Electricity Prices: Electricity prices mirrored the movement in gas prices, increasing from 64.40 £/MWh to 77.00 £/MWh. The rise in electricity prices was influenced by higher gas prices and a notable increase in carbon prices, affecting the cost of power generation.


Factors Influencing Price Changes:


  • Weather Impact: The week featured mixed weather conditions, which led to variable heating demand and impacted wind generation levels, thus influencing gas and power demand.

  • Supply and Demand Dynamics: Ongoing maintenance in key gas facilities and fluctuating import levels contributed to the price changes. Maintenance at major gas fields and variable LNG inputs also played a crucial role.

snapshot of wholesale market data in comparison to yesterday, last week, month and year
 

A Deeper Dive: Daily Energy Price Dynamics


Understanding the day-to-day price changes is key for strategic energy procurement.

DAY AHEAD PRICES

Gas (pence per therm)

Electric (£ per MWh)

29/04/2024

69.00

64.40

30/04/2024

69.00

64.00

01/05/2024

70.50

61.50

02/05/2024

73.95

67.75

03/05/2024

75.40

75.00

07/05/2024

78.48

77.00

WEEKLY AVERAGE

72.72

68.34

The weekly average saw gas prices at 72.72 pence per therm, and electricity prices at 68.34 £/MWh. This represents a market responding to a blend of supply challenges and fluctuating demand.

 

Last Week vs. This Week:


When compared to the previous week, both gas and electricity prices exhibited an upward trend, with gas prices rising due to reduced supply from maintenance and lower imports. Electricity prices also increased, tracking the rise in gas prices and carbon costs.

 

Looking Forward: Market Forecast


The coming week could see continued price volatility. The energy market will be watching maintenance activities at key gas facilities and changes in weather patterns that could affect demand. Geopolitical tensions and their potential impacts on energy supply will also be key factors to monitor.


 

Overview of Last Week’s Oil Market

This past week has seen notable fluctuations in oil prices, influenced by ongoing geopolitical tensions and economic indicators. Here’s a detailed look at the developments:


Oil Market at a Glance:


  • Start of the Week: Oil prices climbed, with Brent crude reaching $89.50/barrel and WTI at $83.85/barrel on Friday, 29th April. Prices were bolstered by Middle Eastern tensions but were capped by a strong dollar and rising U.S. inflation expectations, which dampened hopes of an interest rate cut.

  • Midweek Movements: Prices began to ease on Monday, as optimism for a ceasefire in Gaza grew. Brent crude fell to $88.70/barrel and WTI to $83.17/barrel. The easing of geopolitical fears and strong oil export volumes outside of OPEC+ contributed to this decline.

  • End of the Week: By Friday, the markets had responded to varying signals. Ceasefire talks in Gaza and U.S. economic data influenced trading patterns, leading to minor increases in oil prices by Tuesday, 7th May, with Brent crude at $83.33/barrel and WTI at $78.48/barrel despite the overarching trend towards lower prices throughout the week.


Factors Influencing Oil Prices:


  • Geopolitical Tensions: Ongoing conflicts in the Middle East, particularly involving Israel and Hamas, have been a critical driver of price fluctuations.

  • Economic Indicators: U.S. inflation data and interest rate expectations have significantly influenced market sentiments. The Federal Reserve's meetings and decisions on interest rates have been closely watched by investors.


 

Your Energy Guide

Our Weekly Wholesale Market Update gives a side-by-side comparison of the gas and electric market increases. For a wider view, the 12-month report sheds light on the bigger picture.

graph to show last 12 months wholesale market movements

For day-to-day updates and detailed analysis, turn to our Daily Energy Market Reports. They are a valuable resource for understanding the market.


Advice for Your Business

For advice that fits with the latest market situation, get in touch for a free business energy quote. Our team at the Smart Energy Company is ready to help you make informed choices, tailored to the market’s current state.

 

Get Your Free Business Energy Quote Today


Keep visiting our blog for weekly updates. If you have any questions or need more detailed advice, we’re just a call away. We’ll help you navigate through the market changes with ease and confidence.





Or Call us on 0151 459 3388


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