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Weekly Wholesale Energy Market Update - UK Energy & Oil Markets - 11/09/2023

Your Weekly Guide to UK Energy Markets


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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


From the 4th to the 8th of September 2023, the gas and power markets experienced significant volatility, with prices influenced by a variety of factors both domestic and international.


The week began on the 4th with the NBP DA contract trading at 79.00p/th and electricity at £86.00/MWh. Prices saw an initial increase on the 5th, with gas at 81.38p/th and electricity at £85.25/MWh, influenced by the possibility of averting strikes in Australia and recovering Norwegian flows.


However, by the 6th, gas prices dipped to 74.90p/th and electricity to £86.50/MWh, driven by an updated strike schedule for Chevron’s Australian sites and low Norwegian flows. The 7th saw a slight uptick in gas to 75.40p/th but a drop in electricity to £89.50/MWh, influenced by a delay in Australian strikes and softer demand forecasts.


The week concluded on the 8th with gas at 84.25p/th and electricity at £92.00/MWh, influenced by an uptick in gas for power demand and ongoing strikes in Australia.


Start of the New Week:

The new week began on the 11th with gas at 93.25p/th and electricity at £97.25/MWh, influenced by extended outages in Norway and ongoing strikes in Australia.


Key Points:

  1. Australian Strikes: The ongoing and potential strikes at Chevron's Australian LNG facilities added volatility to the market.

  2. Norwegian Flows: Low and fluctuating flows from Norway had a significant impact on prices.

  3. Demand Fluctuations: Both local and non-local demand saw changes, affecting the market balance.

Graph of the Last Week's Movements:


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


graph showing wholesale energy movements in the week from 04/09/2023 to 11/09/2023

snapshot of market movements from last week, month and year

Forecast:


The market is expected to remain volatile, especially with the extended outages in Norway and strikes in Australia.

 

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)

04/09/2023

79.00

86.00

05/09/2023

81.38

85.25

06/09/2023

74.90

86.50

07/09/2023

75.40

89.50

08/09/2023

84.25

92.00

11/09/2023

93.25

97.25

WEEKLY AVERAGE

81.36

89.42

 

Weekly Wholesale Energy Market Report: Oil Markets


From the 4th to the 8th of September 2023, the oil market experienced a series of fluctuations, largely influenced by OPEC+ decisions and economic indicators.


The week started on the 4th with Brent crude at $88.49 a barrel and WTI at $85.02. Prices were driven by expectations of tightening supplies, with Saudi Arabia and Russia extending their voluntary supply cuts.


By the 5th, Brent crude slightly increased to $89.00, and WTI followed suit at $85.95, buoyed by expectations that OPEC+ would maintain tight supplies and the U.S. Federal Reserve might cease aggressive interest rate hikes.


On the 6th, Brent crude reached a milestone, closing above the $90 mark for the first time since November 2022, settling at $90.04. WTI also gained, closing at $86.69. These increases were influenced by extended supply cuts from Saudi Arabia and Russia.


However, the 8th saw a slight dip, with Brent crude settling at $89.92 and WTI at $86.67, influenced by weakening economic numbers from the euro zone and mixed data from China.


Start of the New Week:

The new week began on the 11th with Brent at $90.65 and WTI at $87.51, influenced by rising U.S. diesel futures and extended supply cuts from Saudi Arabia and Russia.


Key Points:

  1. OPEC+ Decisions: Extended supply cuts from Saudi Arabia and Russia had a significant impact on oil prices.

  2. Economic Indicators: U.S. Federal Reserve policies and economic data from the euro zone and China also played roles.

  3. Forecast: With seasonal refinery maintenance in Russia and ongoing geopolitical events, the market is expected to remain volatile.

 

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 months 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.


 

Ready to Renew?


Contact us today to discuss the contract options for your next energy renewal. Our experts can provide tailored quotes to help enhance your energy strategy.


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