top of page
Keyboard and Mouse

Weekly Wholesale Energy Market Update - UK Energy & Oil Markets - 20/11/2023


image showing up arrows to show the gas and electricity wholesale markets increased from this time last week and at what percentage it went up by

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 & Power Market Review: 13/11/2023 - 20/11/2023


Gas Market Dynamics

  • Start of the Week (13/11/2023): The week opened with gas prices at 95.00 p/th, reflecting a bearish market sentiment due to warmer temperatures and high imports from Norway. The market was positioned for changes influenced by maintenance schedules and colder weather forecasts.

  • Midweek Fluctuations (14/11/2023 - 15/11/2023): Gas prices saw an upward trend, reaching 109.00 p/th on 14/11 and 107.75 p/th on 15/11. This increase was driven by delayed restarts at Oseberg and Gullfaks, and extended maintenance at Barrow North, despite a resumption of supply from the Tamar field by Chevron.

  • Towards the Week's End (16/11/2023 - 17/11/2023): The market showed slight variations, with gas prices slightly rising to 104.98 p/th on 16/11 and then decreasing to 104.75 p/th on 17/11. The market responded to changing demand forecasts and ongoing maintenance activities.

  • Start of the New Week (20/11/2023): Gas prices opened at 113.50 p/th, influenced by colder weather forecasts increasing demand projections. The balance between robust supply and rising demand due to colder, less windy weather is a key factor.

Power Market Trends

  • Renewable Generation's Impact: The fluctuations in wind power generation impacted the gas-for-power demand, reflecting the interdependence between renewable output and gas market trends.

  • Electricity Price Movements:

    • 13/11/2023: Electricity prices started at £90.00/MWh.

    • 14/11/2023: A significant drop to £85.50/MWh was observed, influenced by strong renewable output and warm weather reducing demand.

    • 15/11/2023: Prices surged to £125.50/MWh, possibly due to lower wind generation and increased gas-for-power demand.

    • 16/11/2023: Slight decline to £111.00/MWh.

    • 17/11/2023: Further decrease to £94.50/MWh, reflecting stabilizing market conditions.

    • 20/11/2023: Opening at £106.00/MWh, indicating an alignment with rising gas prices and changing demand forecasts.

Key Observations

  • Weather Influence: Transitioning weather patterns played a crucial role in shaping energy consumption and prices throughout the week.

  • Maintenance and Supply Factors: Maintenance activities and supply dynamics from key gas fields and LNG sources contributed to the market's volatility.

  • Interplay of Gas and Electricity Markets: The close correlation between gas and electricity markets was evident, with renewable generation and weather conditions influencing both.

Outlook

The upcoming period in the gas and power markets is likely to be influenced by a combination of colder weather forecasts, renewable output, and supply stability. Stakeholders should continue to monitor these evolving factors to navigate the market effectively.



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 movements of wholesale energy prices in the last week
comparison of wholesale energy prices from this time yesterday, last week, month and year


Forecast for the Upcoming Week: 20/11/2023 to 27/11/2023


Looking ahead, the UK energy market anticipates several influencing factors:

  • Weather Forecast: Colder weather is expected, which could increase heating demand and exert upward pressure on energy prices.

  • Renewable Energy Output: Variability in wind generation might influence gas-for-power demand, impacting both gas and electricity prices.

  • Supply Dynamics: Ongoing maintenance activities and the stability of Norwegian and LNG flows are crucial, with any changes potentially affecting the market balance.

  • Market Response to External Factors: Global geopolitical events and broader energy market trends may create uncertainty, influencing market sentiment.

  • Demand-Supply Balance: High gas storage levels limit the market's ability to absorb demand surges or supply disruptions, potentially leading to price volatility.

  • Market Sentiment: Traders will likely react to immediate supply-demand fundamentals and geopolitical risks.

The combination of these factors suggests the possibility of continued volatility in the UK energy market, with stakeholders advised to stay alert to rapid changes.

 

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)

13/11/2023

95.00

90.00

14/11/2023

109.00

85.50

15/11/2023

107.75

125.50

16/11/2023

104.98

111.00

17/11/2023

104.75

94.50

20/11/2023

113.50

106.00

WEEKLY AVERAGE

105.83

93.88

 

Oil Market Summary: 13/11/2023 to 20/11/2023


Overview

Last week, the oil market experienced a series of declines and modest rebounds. The fluctuations were influenced by a combination of geopolitical and economic factors.


Start of the Week (13/11/2023)

  • Oil prices gained around 2% as Iraq supported OPEC+ oil cuts. Brent futures rose to $81.43 a barrel, and WTI crude to $77.17.

  • However, the week ended with a 4% loss, marking the third consecutive weekly decline.

Midweek Movements

  • 14/11/2023: Brent crude increased to $82.52 a barrel, finding support around the $80 mark.

  • 15/11/2023: Prices remained relatively stable. Brent fell slightly to $82.47 a barrel; WTI crude held at $78.26.

  • 16/11/2023: Prices dropped, with Brent at $81.18 a barrel and WTI crude at $76.66, influenced by U.S. inventory rises and record production.

Week's End (17/11/2023)

  • Oil prices dropped significantly, reaching a four-month low. Brent futures settled at $77.42 a barrel, and WTI crude at $72.90.

  • The decline was driven by concerns over global oil demand following weak economic data from the U.S. and Asia.

Start of the New Week (20/11/2023)

  • Brent crude rebounded above $80, indicating a recovery from its recent low.

Key Points

  • Geopolitical Developments: Middle East tensions initially influenced prices, but the focus shifted as supply concerns eased.

  • Economic Indicators: Economic data from the U.S. and China played a significant role in shaping market expectations.

  • Supply Dynamics: Decisions by OPEC and changes in U.S. oil production levels were key monitoring points.

Forecast for the Upcoming Week: 20/11/2023 to 27/11/2023

  • The oil market may continue to be volatile, influenced by geopolitical developments, economic indicators, OPEC+'s decisions on output cuts, and demand outlooks. Market participants should stay alert to these evolving dynamics.


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 wholesale market movements over the last 12 months
 

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.

 
image of happy woman with text to show what the average saving per site has been in 2023

Or Call us on 0151 459 3388

17 views0 comments

Comentários


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