top of page
Keyboard and Mouse

Weekly Wholesale Energy Market Update - UK Energy & Oil Markets - 21/08/2023

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 14th to the 21st of August 2023, the gas and electricity markets showcased a series of dynamic price shifts, influenced by both global events and regional maintenance activities.


The week commenced on the 14th with the NBP (National Balancing Point) DA (Day Ahead) gas contract closing at 79.50p/th and the electricity price at £86.00/MWh. The decline in the gas price was primarily due to surplus volumes sold at elevated prices and European stock levels nearing the 90% target set by the European Commission.


On the 15th, the NBP DA gas contract marked a significant rise, closing at 92.70p/th, while the electricity price peaked at £89.75/MWh. This uptick in gas prices was largely attributed to the onset of Kollsnes maintenance, extended shutdowns, and prolonged maintenance schedules at various UKCS (United Kingdom Continental Shelf) facilities.


By the 16th, the NBP DA gas contract decreased slightly to 88.00p/th, with the electricity price adjusting to £85.50/MWh. The market continued to be influenced by the Kollsnes maintenance and other extended shutdowns at UKCS.


The 17th saw a bearish trend in the gas market, with the NBP DA trading at 82.00p/th and the electricity price dropping to £81.50/MWh. This was majorly influenced by a surge in wind speeds, leading to a decrease in gas for power demand. The delay in talks between major LNG (Liquefied Natural Gas) providers, such as Woodside and Chevron, added to the market's uncertainty.


The 18th remained relatively stable for gas, with the TTF DA at 82.70p/th, while the electricity price slightly increased to £85.25/MWh. The looming potential strike action in Australia and its implications on global LNG supplies kept the market on its toes.


Concluding the week on the 21st, the TTF DA gas price exhibited a bullish stance, closing at 92.50p/th, and the electricity price rose to £95.25/MWh. This was majorly influenced by the unanimous decision by the Offshore Alliance regarding potential strikes at Australian LNG ports and other factors like the reduction in LNG sendouts due to limited cargo arrivals.


Key Points:

  1. Maintenance Activities: The onset of Kollsnes maintenance and extended shutdowns at various UKCS facilities played a pivotal role in influencing gas prices.

  2. Australian Strike Concerns: The potential strike action at Australian LNG facilities and the associated uncertainties significantly impacted the market.

  3. Weather Influences: Intensifying heatwaves and fluctuating wind speeds were major determinants in gas for power demand.

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 weekly wholesale market movements
snapshot of the wholesale market movements from last week, month and year

Forecast:


As we step into the upcoming week, the market is poised for continued volatility, primarily driven by regional maintenance schedules, potential strike actions in Australia, and evolving supply-demand dynamics.

 

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)

14/08/2023

79.50

86.00

15/08/2023

92.70

89.75

16/08/2023

88.00

85.50

17/08/2023

82.00

81.50

18/08/2023

82.70

85.25

21/08/2023

92.50

95.25

WEEKLY AVERAGE

86.23

87.21

 

Weekly Wholesale Energy Market Report: Oil Markets


From the 14th to the 21st of August 2023, the oil market witnessed a series of price changes, influenced by global demand forecasts, economic data, and geopolitical events.


The week began on the 14th with Brent crude oil prices rising slightly by 0.5% to settle at $86.81 a barrel, while the U.S. benchmark, known as WTI, also increased by 0.5%, settling at $83.19. This increase was driven by the International Energy Agency's prediction of record global oil demand and the anticipation of reduced supplies. Additionally, positive U.S. economic data hinted at the possibility of the Federal Reserve concluding its aggressive interest rate hikes.


On the 15th, concerns about China's economic recovery and a strengthening U.S. dollar led to a decline in oil prices. WTI prices decreased by 0.82% to $82.51 a barrel, and Brent settled at $86.21 a barrel. Additionally, there was news of resumed exports from Nigeria's Forcados terminal, which had been halted due to a potential leak.


The 16th echoed the previous day's sentiment, with both WTI and Brent prices reflecting concerns about China's economic prospects and the potential impact on global oil demand.


On the 17th, despite a significant reduction in U.S. oil stocks, prices settled lower. Brent prices decreased by 1.7% to $83.45 a barrel, while WTI declined by 2% to $79.38. This was influenced by concerns about China's economy and the release of Federal Reserve minutes, which indicated a division among officials regarding further interest rate hikes.


The 18th saw a rebound in oil prices, with Brent rising by 0.8% to $84.12 a barrel and WTI increasing by 1.3% to $80.93 a barrel. This uptick was influenced by China's central bank's efforts to support its economy and a weakening U.S. dollar.


Concluding the week on the 21st, both Brent and WTI prices showed an increase, driven by signs of slowing U.S. oil production. WTI prices gained 1.1% to settle at $81.25 a barrel, while Brent increased by 0.8% to $84.80 a barrel. A decline in the U.S. oil and natural gas rig count, which is an early indicator of future production, raised concerns about potential supply tightness for the remainder of the year.


Key Points:

  1. Global Demand Forecasts: Predictions of record global oil demand by the International Energy Agency influenced market movements.

  2. Economic Data: U.S. economic data and China's economic recovery concerns played significant roles in the market's dynamics.

  3. Geopolitical Events: Resumed exports from Nigeria's Forcados terminal and potential output cuts influenced the market.

Forecast: As we navigate the upcoming week, the oil market's volatility is expected to persist. Key factors likely to shape the landscape include China's economic direction, adjustments in production by major oil nations, and global demand variations. In the long run, macroeconomic factors and global energy transitions will crucially dictate oil market directions.


 

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.


16 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