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Weekly Wholesale Energy Market Update - UK Energy & Oil Markets - 11/12/2023

Did you know the UK energy market saw noteworthy changes last week? Understanding these trends is crucial for making informed business decisions. Let's delve into what these developments mean for your business.

Infographic displaying Weekly Wholesale Market Update for the period 20/11/2023 to 27/11/2023 with a 8.35% decrease in the Gas Market and a 16.71% Decrease in the Electric Market, featuring upward arrows and the logo of Smart En. Co.

Your Weekly Guide to UK Energy Markets

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 Gas and Power Market Review: 04/12/2023 - 11/12/2023

Gas Market Overview:

  • Start of the Week: The gas market opened at 98.20 p/th on 04/12/2023. The UK's coldest conditions thus far this winter initially pushed the prices up slightly.

  • Midweek Trends: Prices fell to 94.60 p/th by 05/12/2023, influenced by milder and windier weather, which reduced the demand for heating and power generation. On 06/12/2023, the market continued its downward trend, closing at 95.00 p/th, due to decreased demand and healthy supplies.

  • End of the Week: Prices briefly surged to 96.50 p/th on 07/12/2023 but then settled at 94.25 p/th on 08/12/2023, primarily due to an outage at a gas plant in Shetland. Despite warmer temperatures indicating a bearish trend, supply disruptions caused a temporary bullish reaction.

Electricity Market Overview:

  • Start of the Week: Electricity prices opened at £103.25/MWh on 04/12/2023, reflecting the cold weather's impact on demand.

  • Midweek Trends: The electricity market saw a significant surge to £113.00/MWh on 05/12/2023. However, prices adjusted to £86.00/MWh by 06/12/2023, as warmer temperatures were forecast, potentially reducing heating demand.

  • End of the Week: Prices experienced fluctuations, settling at £84.50/MWh on 08/12/2023, amidst dynamic market conditions and a response to changes in the gas market.

Key Factors Influencing the Market:

  • Weather Conditions: Fluctuating temperatures played a significant role in shaping both gas and electricity prices, with the initial cold spell driving up demand.

  • Supply Dynamics: Healthy LNG supply, Norwegian production, and robust storage levels contributed to balancing the market despite fluctuations in demand.

  • Market Reactions: The market responded to various factors including weather changes, supply levels, and unexpected outages, leading to price fluctuations throughout the week.


The UK gas and power markets experienced a week marked by fluctuations due to changing weather conditions and supply dynamics. While the early cold weather increased demand, subsequent milder temperatures and strong supplies led to a general downtrend in gas prices. Electricity prices mirrored these trends but with more significant fluctuations. The market continues to adjust to these evolving conditions, suggesting the potential for continued variability in the upcoming week.

Start of the New Week (11/12/2023):

As the new week begins, the UK gas and power markets have opened with notable changes:

  • Gas Prices: On 11/12/2023, gas prices opened at 90.00 p/th, showing a decrease from the previous week's opening price of 98.20 p/th on 04/12/2023. This represents an 8.36% drop from the same time last week, reflecting continued adjustments to weather conditions and supply dynamics.

  • Electricity Prices: Electricity prices opened at £86.00/MWh on 11/12/2023, compared to £103.25/MWh on 04/12/2023. This indicates a significant decrease of 16.68% from last week's opening, which can be attributed to the warmer weather reducing heating demand and the influence of gas market trends on electricity pricing.

The market's opening scenario on 11/12/2023 suggests a continuation of the trends observed last week, with weather conditions and supply levels remaining key drivers. The reduction in both gas and electricity prices indicates a market response to the improved weather conditions and robust supply, potentially leading to a more stable market in the short term. However, given the nature of energy markets, stakeholders should remain vigilant for any sudden changes in these dynamics as the week progresses.

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 the wholesale market movements in the last week

Forecast for the Upcoming Week: 11/12/2023 to 18/12/2023

The UK gas and power markets in the upcoming week are expected to be shaped by a mix of weather trends, supply dynamics, and renewable energy outputs. With temperatures forecasted to edge up and stabilize, a decrease in heating demand may exert downward pressure on energy prices. However, the market's sensitivity to sudden changes in weather patterns and fluctuations in renewable energy outputs, particularly wind generation, will be crucial.

As wind speeds are forecast to pick up sharply from 14th December, this could lead to reduced reliance on gas for power generation, influencing gas demand. Additionally, the stability of LNG supplies and the end of outages in domestic production will play a significant role in market dynamics.

Given these factors, stakeholders should monitor the market closely, staying informed about weather forecasts, renewable energy outputs, and supply levels. Flexibility and readiness to respond to rapid changes will be key in navigating the week ahead in the UK energy market.=


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:


Gas (pence per therm)

Electric (£ per MWh)























Oil Market Summary: 04/12/2023 to 11/12/2023


The oil market experienced a week of varied fluctuations influenced by geopolitical events, OPEC+ meetings, and global economic activity.

  • Start of the Week: The week began with oil prices slumping on 04/12/2023. Brent crude futures settled at $78.88 a barrel, down 2.45%, while WTI crude futures dropped to $74.07 a barrel, a decline of 2.49%. This was primarily due to skepticism about the depth of OPEC+ supply cuts and concerns over sluggish global manufacturing activity.

  • Midweek Trends: Throughout the week, the market remained under pressure. On 05/12/2023, Brent crude futures fell further to $78.03 a barrel, and WTI to $73.04, amid concerns about dropping demand and uncertainty around OPEC+ supply cuts. The trend continued on 06/12/2023, with Brent settling at $77.20 and WTI at $72.32, influenced by a stronger U.S. dollar and ongoing demand concerns.

  • Deepening Declines: On 07/12/2023, oil prices fell to their lowest since June, with Brent at $74.30 a barrel and WTI at $69.38. This was driven by U.S. data showing a surprising rise in gasoline inventories and concerns over China's economic health. The decline continued on 08/12/2023, with Brent dropping to $74.05 a barrel and WTI to $69.34, marking six-month lows amid worries about sluggish energy demand in the U.S. and China.

  • End of the Week: The week concluded on a slightly positive note on 11/12/2023, with Brent crude futures rising to $75.84 a barrel (up 2.4%) and WTI crude futures to $71.23 (up 2.7%). This increase was supported by U.S. data indicating potential demand growth. However, the week overall saw both benchmarks losing 3.8%, continuing a seven-week streak of declines, the longest in half a decade.

Key Influencing Factors:

  • OPEC+ Supply Cuts: Doubts about the depth and duration of the announced OPEC+ supply cuts contributed to the market's bearish sentiment.

  • Global Manufacturing Activity: Sluggish global manufacturing activity and weak economic indicators, especially in China, raised concerns about fuel demand.

  • U.S. Labor Data: Positive job growth data from the U.S. provided some bullish influence towards the end of the week.

  • Gasoline Inventories and Dollar Strength: Surprising increases in U.S. gasoline inventories and the strength of the U.S. dollar added to the market's downward pressure.

Forecast for the Upcoming Week: 04/12/2023 to 11/12/2023

The oil market may continue to be volatile, influenced by the aftermath of the OPEC+ meeting, ongoing geopolitical developments, and global economic indicators. Market participants should stay alert to these evolving dynamics, as they will likely influence oil price movements in the coming week.

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.

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Have More Questions?

  • Is it possible to change multiple business utilities at the same time?
    Our switching service allows you to switch multiple utilities simultaneously. We have successfully assisted multiple businesses in the UK by helping them save on various services such as energy and water with savings within 2023 already over the £2 Million mark.
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  • How does switching business utilities work?
    Switching business utilities involves a straightforward process. Here's a general overview of how it works: Evaluation: Start by assessing your current utility bills and usage patterns. This will give you an idea of your current costs and help identify areas where savings can be made. Comparison: Use a switching service like ours to compare different utility providers in your area. We provide you with quotes from multiple suppliers, allowing you to compare prices, contract terms, and services offered. Selection: Based on the comparison results, choose the utility provider that best meets your needs and budget. Consider factors such as price, customer reviews, contract terms, and any additional services or benefits offered. Contract Negotiation: Once you've chosen a new provider, our team can help negotiate the contract terms and rates on your behalf. Switching Process: The switching service will coordinate the transition with your current supplier and the new provider. This may involve submitting termination notices, arranging meter readings, and scheduling the activation of new services. Enjoy the Savings: After the switch, you'll start receiving services from your new provider, typically at the agreed-upon rates. You will notice savings on your utility bills, providing you with cost advantages for your business. Remember, the exact process may vary depending on the type of utility you are switching, but our switching service aims to simplify the process and assist you at every step.
  • Who are the cheapest business utility providers?
    As market conditions and prices fluctuate regularly, it's challenging to provide an up-to-date and definitive list of the cheapest business utility providers. The prices we provide you are valid and available on the day of the quote and will provide most current and competitive deals available. Our switching service helps you compare prices and offers from multiple suppliers, ensuring you have the most accurate and relevant information to make an informed decision about your business utility provider.
  • What is energy procurement?
    Energy procurement is the process of sourcing, negotiating, and securing energy contracts to meet the specific needs of a business. It involves analysing energy consumption patterns, understanding market trends, and negotiating with suppliers to obtain the best possible rates and contract terms.
  • Why is energy procurement important for my business?
    Energy procurement ensures that your business secures energy contracts that are both cost-effective and aligned with your operational needs. Proper energy procurement can lead to significant cost savings, budget predictability, and reduced risks associated with volatile energy markets.
  • How does The Smart Energy Company help with energy procurement?
    We specialise in analysing your energy consumption, understanding your specific needs, and leveraging our relationships with over 20 suppliers to negotiate the best possible contracts on your behalf. Our team ensures you get optimal rates, flexible terms, and contracts that align with your business goals.
  • How do you ensure I get the best energy rates?
    Our team continuously monitors the energy market, staying updated with trends, price fluctuations, and supplier offerings. Coupled with our in-depth analysis of your energy needs and consumption patterns, we negotiate with suppliers to secure rates that are both competitive and suited to your business.
  • Are there any hidden fees associated with your energy procurement services?
    Transparency is a core value at The Smart Energy Company. We provide a clear breakdown of any commission we earn as a company when you come to agree any new energy contract. This is typically included as an uplift in your unit rate and paid to us by the supplier you chose to go to. Our primary goal is to secure the best energy deals for you, with no hidden costs.
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