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Weekly Wholesale Energy Market Update - UK Energy & Oil Markets - 29/01/2024

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

The past week in the UK energy market was marked by significant fluctuations in both gas and electricity prices, influenced by varying weather conditions, LNG supply dynamics, and maintenance activities.


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

 

Weekly Gas and Power Market Review: 22/01/2024 - 29/01/2024


Detailed Price Movements:


  • Start of the Week: Gas prices began at 65.97 p/th and electricity at £57.00/MWh on 22/01/2024. The market was affected by milder temperatures and strong winds, leading to decreased demand.

  • Midweek Trends: Prices experienced volatility, with gas decreasing to 65.60 p/th on 23/01/2024, amid stable supply and fluctuating local demand. Electricity prices dropped to £53.80/MWh, reflecting the looser market balance.

  • End of the Week: The week concluded on 29/01/2024 with gas prices at 71.23 p/th and electricity at £69.50/MWh. This increase was driven by bullish signals from delayed LNG cargo arrivals and a rise in local demand.

graph to show last weeks wholesale market movements in the last 7 days



Current Market Rates

As of 29/01/2024, the market rates indicate an upward trend, particularly in gas prices, as supply concerns begin to surface due to geopolitical impacts on LNG supplies.


Key Influences on the Market:

  • Weather conditions, particularly windspeeds and temperatures, significantly impacted demand.

  • LNG supply dynamics, influenced by challenging berthing conditions and international geopolitical events, played a crucial role.

  • Maintenance activities in Norwegian fields and UK domestic production affected supply levels.


snapshot of wholesale prices from 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 last 12 months wholesale market movements

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)

22/01/2024

65.97

57.00

23/01/2024

65.60

53.80

24/01/2024

70.50

67.50

25/01/2024

67.50

60.00

26/01/2024

70.00

69.50

29/01/2024

71.23

69.50

WEEKLY AVERAGE

70.78

73.96

 

Forecast for the Upcoming Week: 29/01/2024 - 05/02/2024


Looking ahead, the market is expected to continue responding to these dynamic factors. The anticipation of milder weather and maintenance activities might impact supply levels, while geopolitical factors could influence LNG availability. Businesses should stay informed and consider these trends in their energy procurement and management strategies.


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 past week in the oil market has been characterised by notable price fluctuations influenced by geopolitical events, weather conditions, and economic developments.


  • Start of the Week: On 22/01/2024, oil prices settled slightly lower but recorded a weekly gain. Brent futures were at $78.56 a barrel, and WTI crude at $73.41, impacted by Middle East tensions and global economic concerns.

  • Midweek Trends: Prices saw an increase on 23/01/2024 due to concerns over global energy supplies and extreme cold in the U.S. Brent crude futures rose about 2%, and WTI crude futures were up at $74.61. However, on 24/01/2024, prices settled lower as the focus shifted to rebounding crude output in parts of the U.S. and rising supply in Libya and Norway.

  • End of the Week: On 26/01/2024, oil prices gained roughly 3%, reaching their highest since December, driven by U.S. economic data and tensions in the Red Sea. Brent crude futures settled at $82.43 a barrel, and WTI crude at $77.36. The week concluded on 29/01/2024 with Brent crude at $83.55 a barrel and WTI crude at $78.01, the highest close since November, boosted by U.S. economic growth and signs of Chinese stimulus.


Key Influencing Factors:

  • Geopolitical tensions in the Middle East, particularly in the Red Sea region, and Ukrainian drone attacks on Russian oil facilities significantly influenced oil prices.

  • Severe cold weather in the U.S. impacting crude oil production.

  • Economic indicators, including U.S. GDP growth and Chinese economic stimulus, affected demand expectations.


Forecast for the Upcoming Week:

The oil market is likely to remain volatile, influenced by ongoing geopolitical tensions, weather-related disruptions, and global economic indicators. Market participants should closely monitor these evolving dynamics, as they will likely impact oil price movements in the near term.


 

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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