top of page
Keyboard and Mouse

Weekly Wholesale Energy Market Update - UK Energy & Oil Markets - 18/09/2023

Your Weekly Guide to UK Energy Markets


image to show quick direction of the gas and power markets since last week

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 11th to the 18th of September 2023, the gas and power markets experienced notable fluctuations, influenced by a myriad of factors ranging from domestic demand to international supply disruptions.


Start of the Week:

The week commenced on the 11th with the NBP DA contract trading at 93.25p/th and electricity at £97.25/MWh. These opening prices were influenced by extended outages in Norway and ongoing strikes in Australia.


Midweek Movements:

By the 12th, gas prices rose to 92.5p/th and electricity to £89.25/MWh, driven by a drop in flows from Freeport and a decrease in Norwegian nominations. On the 13th, gas prices retreated to 88p/th while electricity remained stable at £90.00/MWh, influenced by a tribunal date set for Australian strikes and a drop in gas-for-power demand.


The 14th saw a slight increase in gas prices to 94p/th, but electricity prices dropped to £90.00/MWh. This was due to forecasted drops in wind speeds in the UK and ongoing outages in Norway.


Week's End:

The week concluded on the 15th with gas at 92.90p/th and electricity at £79.50/MWh. The key drivers were shortened maintenance work at the Kollsnes gas processing plant and ongoing developments around strike action at Australian Chevron LNG plants.


Start of the New Week:

The new week began on the 18th with gas at 88.00p/th and electricity at £63.00/MWh. The main influences were another delay in the start-up of the giant Troll field and a significant softening in demand due to strong winds over the NWE.


Key Points:

  • Australian Strikes: The ongoing strikes at Chevron's Australian LNG facilities continued to add volatility to the market.

  • Norwegian Outages: Delays and extensions in Norwegian outages had a significant impact on gas prices.

  • Demand Fluctuations: Both local and non-local demand experienced changes, affecting the market balance significantly.

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 wholesale market movements

Forecast:


In the upcoming week, the gas and power markets are set for a mixed outlook. Norwegian gas flows are expected to stabilise with the start-up of the Troll field, potentially easing gas prices. However, the Australian tribunal decision on 22nd September could add volatility. On the electricity front, strong winds and high French nuclear production could stabilise prices, but cooler UK weather may increase both gas and electricity demand. Overall, it's a week that calls for cautious optimism and close monitoring of key developments.

 

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)

11/09/2023

93.25

97.25

12/09/2023

88.25

89.25

13/09/2023

92.10

90.00

14/09/2023

90.30

90.00

15/09/2023

92.90

79.50

18/09/2023

88.00

63.00

WEEKLY AVERAGE

90.80

84.83

 

Weekly Wholesale Energy Market Report: Oil Markets


From the 11th to the 18th of September 2023, the oil markets saw considerable shifts, influenced by a range of factors including geopolitical tensions, supply cuts, and economic indicators.


Start of the Week: The week kicked off on the 11th with Brent crude futures at $90.65 a barrel and WTI crude at $87.51 a barrel. The opening prices were largely driven by extended supply cuts from Saudi Arabia and Russia, as well as rising U.S. diesel futures.


Midweek Movements: By the 12th, Brent crude slightly dipped to $90.64 a barrel, while WTI fell to $87.29 a barrel, influenced by concerns over Chinese economic activity. On the 13th, both Brent and WTI surged to $92.06 and $88.84 a barrel, respectively, buoyed by OPEC's optimistic outlook on global oil demand. The 14th saw a minor decline in prices, with Brent at $91.88 and WTI at $88.52 a barrel, impacted by a surprise build in U.S. crude inventories.


Week's End: The week wrapped up on the 15th with Brent at $93.70 a barrel and WTI at $90.16 a barrel. The key drivers were expectations of tighter supply and the IEA's report indicating a market deficit through the fourth quarter if production cuts are maintained.


Start of the New Week: The new week began on the 18th with Brent at $93.93 a barrel and WTI at $90.77 a barrel. The main influences were ongoing supply concerns, spearheaded by Saudi Arabian production cuts, and optimism around Chinese demand.


Key Points:

  • Supply Cuts: Extended supply cuts from Saudi Arabia and Russia continued to tighten the market.

  • Economic Indicators: Data from China and the U.S. had varying impacts on oil prices.

  • Inventory Levels: U.S. crude inventories showed unexpected changes, affecting market sentiment.

Forecast:


Oil markets are poised for continued volatility. Supply constraints, particularly from Saudi Arabia and Russia's extended production cuts, are expected to keep prices elevated. On the other hand, geopolitical factors, such as ongoing strikes in Australia and potential disruptions in the Middle East, could add further uncertainty. Demand-side indicators will also be crucial; any positive economic data from major economies like the U.S. and China could provide a boost to oil prices. Conversely, negative economic news could exert downward pressure. In summary, the week ahead is likely to see a complex interplay of supply and demand factors, geopolitical developments, and economic indicators, making it a period of cautious watchfulness for market participants.

 

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 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.


25 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