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Weekly Wholesale Energy Market Update - UK Energy & Oil Markets - 22/01/2024

Welcome to The Smart Energy Company's definitive guide to the latest trends in the UK energy markets. Our weekly reports provide the insights you need to make informed decisions for your business's energy needs.


Weekly Energy Market Summary

Last week, the UK energy market experienced notable changes, with a general downward trend in both gas and electricity prices. These movements were influenced by varying weather conditions, fluctuations in supply, and shifts in demand.


image to show how much the energy market has moved in the last week

 

Weekly Gas and Power Market Review: 15/01/2024 - 22/01/2024


Detailed Price Movements:


  • Start of the Week: Gas prices opened at 76.50 p/th and electricity at £87.00/MWh on 15/01/2024. The market reacted to the anticipated cold spell across the UK, expecting a rise in heating demand.

  • Midweek Trends: By 17/01/2024, gas prices had slightly decreased to 69.25 p/th, while electricity rates also saw a reduction to £76.50/MWh. The changes were due to a mix of muted demand expectations for the following week and a well-supplied market, despite the ongoing cold conditions.

  • End of the Week: The week concluded on 19/01/2024 with gas prices at 68.75 p/th and electricity at £65.75/MWh. This downward trend was driven by a significant decrease in local demand due to warmer weather and strong winds, impacting both gas and electricity consumption.


graph to show last weeks wholesale energy movements


Current Market Rates

The new week began on 22/01/2024 with gas prices at 65.25 p/th and electricity prices at £57.00/MWh. These rates reflect the changes in weather conditions, with milder temperatures and stronger winds, leading to decreased demand.


Key Influences on the Market:

  • The arrival of a warm spell and strong winds in the UK led to a considerable drop in local demand.

  • The LNG supply remained robust, with several cargo arrivals and stable sendouts.

  • Fluctuations in renewable energy generation, especially wind power, significantly impacted electricity prices.

  • Norwegian and UK Continental Shelf (UKCS) supplies showed stability, adding to market confidence.


snapshot of wholesale energy markets compared to last week, month and year

Long-Term Trends

Understanding these weekly changes provides a context for predicting future market movements. For businesses planning ahead, it's crucial to consider these dynamics in energy procurement and management strategies.


graph to show wholesale market movements over the last 12 months

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)

15/01/2024

76.50

87.00

16/01/2024

75.20

87.00

17/01/2024

69.25

76.50

18/01/2024

69.00

70.50

19/01/2024

68.75

65.75

22/01/2024

65.25

57.00

WEEKLY AVERAGE

70.66

73.96

 

Forecast for the Upcoming Week: 22/01/2024 - 29/01/2024


As we progress into the next week, we anticipate continued fluctuations influenced by weather forecasts, renewable energy outputs, and supply stability. Businesses should remain vigilant, especially those with upcoming contract renewals, to leverage potential market opportunities.


Your Weekly Guide


Our reports are designed to help businesses like yours navigate the complexities of the energy market. Stay informed to make the best decisions when negotiating your next energy contract


 

Oil Market Summary: 15/01/2024 to 22/01/2024


Overview:

The oil market experienced a week of diverse fluctuations driven by geopolitical events, supply dynamics, and economic indicators.


Start of the Week:

  • 15/01/2024: Oil prices rose by 1% following military actions in the Middle East and the redirection of oil tankers away from the Red Sea. Brent crude futures increased by 1.1% to $78.29 a barrel, while WTI crude futures climbed 0.9% to $72.68.

Midweek Trends:

  • 16/01/2024: Prices slightly weakened due to limited impact of Middle East conflicts on crude output. Brent crude futures settled at $78.15 a barrel.

  • 17/01/2024: Oil prices saw little change. Brent crude settled at $78.29 a barrel, while WTI crude ended at $72.40 a barrel, influenced by the strengthening dollar.

  • 18/01/2024: Prices remained nearly flat, with Brent crude at $77.88 a barrel and WTI crude at $72.56, as severe cold in the U.S. affected oil production but was offset by weak economic growth in China.

End of the Week:

  • 19/01/2024: Oil prices increased with Brent crude settling at $79.10 a barrel and WTI crude at $74.08, driven by the IEA’s forecast of strong global oil demand and disruptions in U.S. crude output.

  • 22/01/2024: The week concluded with a slight decrease in oil prices, yet recorded a weekly gain. Brent futures settled at $78.56 a barrel and WTI crude at $73.41, as Middle East tensions and production disruptions balanced concerns about the global economy.


Key Influencing Factors:

  • Geopolitical risks in the Middle East, particularly actions against Houthi targets in Yemen and tensions in Gaza, influenced oil prices.

  • Supply disruptions, notably in the U.S. due to cold weather and ongoing outages in Libya, affected the market.

  • Economic indicators, such as the U.S. dollar strength and China's economic growth, played a significant role in price movements.


Forecast for the Upcoming Week:

The oil market is expected to remain sensitive to geopolitical developments in the Middle East and supply disruptions. Economic data, particularly relating to global and Chinese growth, will also be critical in shaping oil prices. Market participants should closely monitor these evolving factors for potential impacts on the oil market.


 

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 a happy woman here, along with text highlighting the average savings per site in 2023.

 

Get Your Free Business Energy Quote Today


For tailored advice and to understand what current market rates mean for your business, contact us for a free quote.





Or Call us on 0151 459 3388


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