top of page
Keyboard and Mouse

Weekly Wholesale Energy Market Update - UK Energy & Oil Markets - 14/08/2023

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 Wholesale Energy Market Report: Gas & Power Markets


From the 7th to the 14th of August 2023, the gas market experienced a whirlwind of fluctuations, influenced by several regional and global factors, resulting in varying prices across the week.


The week initiated with the NBP DA contract closing at 71.25p/th on the 7th, dropping by 4.25p/th. This was primarily due to increased gas flow from the Greater Britannia Area and indications that UK LNG is showing signs of recovery from the summer hiatus. By the 8th, the NBP DA contract stood steady at 71.4p/th, reflecting stable fundamentals in the North-West Europe balance. The 9th saw a modest rise with the NBP DA contract closing 1.35p/th higher at 72.75p/th, influenced by consistent UK continental shelf outputs and an uptick in Langeled flow.


However, the 10th marked a significant spike with the NBP DA soaring by over 37% to close at 100 p/th, propelled by concerns over the announced strikes at the Woodside-Chevron Australian LNG plants. This underscored European energy security concerns and intensified the competition for LNG cargoes between European and Asian markets.


Yet, this surge was short-lived. The 11th saw the NBP DA contract settling lower at 85p/th, a reflection of progressive talks between major Australian LNG exporters and the Australian Workers. These developments had the potential to mitigate strikes at pivotal LNG plants, which collectively cater to about 11% of the global LNG market.


Concluding the week on the 14th, the TF DA contract registered a 9% decline from the previous day due to surplus volumes sold at higher prices. This is while European stock levels approached the 90% full mark, a target set by the European Commission.


Key Points:

  1. Rapid Fluctuations: The week observed a series of price changes, from notable drops to significant spikes.

  2. Global Influences: Events like the potential strikes at Australian LNG plants highlighted the interconnectedness of global energy markets.

  3. End-of-week Decline: Despite the mid-week turmoil, the week concluded with a drop in prices, influenced by a combination of factors including European stock levels and potential gas consumption changes.

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 last weeks wholesale market movements
snapshot of energy price differences from day, week and previous month

Forecast:


Entering the forthcoming week, anticipations are set around continued volatility in the market, hinging on regional maintenance schedules, global geopolitical events, and evolving supply-demand dynamics. Beyond the immediate future, it's evident that larger economic trends and global energy transitions will further shape the gas market's trajectory.

 

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)

07/08/2023

72.40

73.25

08/08/2023

74.80

82.50

09/08/2023

95.90

83.00

10/08/2023

87.00

85.00

11/08/2023

78.90

88.00

12/08/2023

84.00

85.00

WEEKLY AVERAGE

82.17

82.79

 

Weekly Wholesale Energy Market Report: Oil Markets


From the 7th to the 14th of August 2023, the oil market witnessed substantial price fluctuations, largely influenced by a myriad of geopolitical and economic activities across the globe.


The week commenced with oil prices rising significantly on the 7th, as Brent crude futures settled at $86.24 a barrel. This bullish sentiment stemmed from extended supply cuts by leading producers, Saudi Arabia and Russia, pushing prices to record a sixth consecutive week of gains.


By the 8th, there was a reversal in fortune, as prices dipped roughly 1% for both Brent crude and WTI. This downturn was primarily shaped by anticipations of reduced demand from the two global economic giants, the U.S. and China, coupled with a strengthening dollar.


The 9th saw a slight upward trend, with Brent crude settling at $86.17 a barrel. Positive U.S. economic forecasts provided a boost, counterbalancing China's lackluster import and export data. However, the market truly surged on the 10th, witnessing oil prices hit new peaks. Factors such as declining U.S. fuel stockpiles and ongoing production cuts by major oil producers played a pivotal role in this surge.


Yet, by the 11th, prices retracted, as geopolitical concerns, especially tensions between Russia and Ukraine in the Black Sea region, began looming over the market. The subsequent impact of China's economic challenges further dampened the oil demand outlook.


Rounding off the week on the 14th, a positive trajectory was observed again with the International Energy Agency forecasting record global demand and dwindling supplies, which resulted in both Brent crude and WTI futures rising by about 0.5%.


Key Points:

  • Dynamic Pricing: The oil market experienced substantial price oscillations throughout the week.

  • Geopolitical & Economic Interactions: Key drivers ranged from geopolitical tensions, such as potential conflicts in the Black Sea region, to economic data releases from major economies.

  • End-of-week Boost: Despite mid-week volatilities, the week wrapped up on a high note due to global demand predictions.

Forecast: Moving into the upcoming week, market watchers anticipate sustained unpredictability. Factors likely to shape the landscape include ongoing geopolitical events, supply chain adjustments from major producers, and ever-changing global demand patterns. Over a longer horizon, broader economic shifts and worldwide energy transformations will undoubtedly steer the direction of the oil markets.


 

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 showing the wholesale energy market over the last 12 months

 

Stay Updated with Our Weekly Market Reports


By regularly checking our weekly market reports, you can stay updated on the latest trends in UK energy markets, gain insights into potential opportunities for savings, and make informed decisions on your next energy contract renewal.


 

Get Your Free Quote Today


Are you ready to secure the best energy contract renewal for your business? Get in touch with us today to see what options are available for your next renewals. Click the button below to request your free quote, and discover how our expertise can enhance your business's energy strategy.


23 views0 comments

Comments


Keep Up To Date With Market Updates

technological-devices-with-financial-reports.jpg

Securing your next energy contract at the optimum moment is essential for fully realising your savings opportunities. Provide your details below to gain access to weekly market updates, giving you the advantage to make informed purchasing decisions at the right time.

 

Bid farewell to aggressive sales approaches from other brokers and take charge with confidence!

You're Subscribed! Look out for your first report soon!

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.
  • How much can I save on my business utility bills?
    The amount you can save on your business utility bills will depend on various factors such as your current usage, the rates offered by different providers, and the specific deals available in your location. However, our switching service is designed to help you find the best deals and save as much as possible. By comparing multiple suppliers and negotiating competitive rates, we aim to maximise your potential savings. Get in touch with us to discuss your specific needs and get personalised information on potential cost savings for your business utility bills.
  • 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.
Business Meeting

Unlock the Potential of
Your Business Energy

At The Smart Energy Company, we're committed to offering tailored solutions that fit your energy needs perfectly. By staying ahead of market trends, we ensure you're always equipped with the most efficient and sustainable energy options. We take pride in our client-driven approach, where your feedback shapes our continuous improvement.

 

Why not schedule a complimentary consultation with one of our energy experts today? Let's find the perfect energy solution tailored to your business.

See What Our Clients Say About Us

1828884.png
1828884.png
1828884.png
1828884.png
1828884.png
56937_edited.png

Very helpful, quick expert advice. We have been using Smart Energy for a while.

56937_edited_edited.png

Ian Hughes

Operation Manager

Group of Bars

bottom of page