top of page
Keyboard and Mouse

Weekly Wholesale Energy Market Update - UK Energy & Oil Markets - 30/10/2023


Image to show in arrows the direction of the wholesale market since last week with percentage differences shown

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 Movements: 23/10/2023 to 30/10/2023


Start of the Week:

The week began on 23rd October with gas prices at 118.50 p/th and electricity prices at £105.00/MWh.


Midweek Movements:

By 26th October, gas prices slightly increased to 118.00 p/th, a minor change of about 0.42%, while electricity prices saw a decrease to £104.00/MWh, a drop of approximately 0.95%. The market was influenced by geopolitical tensions and weather forecasts.


Week's End:

The week concluded on 30th October with the market opening at gas prices of 128.50 p/th, a significant increase of about 8.44% from the start of the week. Electricity prices also increased to £95.00/MWh, a decrease of about 9.52% compared to the start of the week.


Key Points:

  • Gas Supply: Geopolitical tensions and upcoming cold weather are the main bullish factors.

  • Weather: Milder temperatures are expected this week, but colder weather is forecasted for next week.

  • Global Events: Geopolitical tensions continue to be a significant influence on the market.

Start of the New Week: 30/10/2023

The new week opened with gas prices at 128.50 p/th and electricity prices at £95.00/MWh. Compared to the start of last week, gas prices have increased by 8.44%, while electricity prices have decreased by 9.52%.



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 the wholesale market movements in the last week for gas and electricity
snapshot of market movements from last week, month and year

Forecast for the Upcoming Week: 30/10/2023 to 06/11/2023

As we move into the new week, several factors are expected to influence the UK's energy markets:

  1. Weather Conditions: The latest 15-day forecast suggests milder temperatures for the first part of the week. However, a significant drop in temperatures is expected starting from next Monday, which could increase heating demand.

  2. Geopolitical Tensions: The ongoing conflict between Israel and Hamas continues to add a risk premium to the market. Any escalation could have a more pronounced impact on prices.

  3. Supply Dynamics: LNG sendout is expected to drop, and the UK system opened the week with a short supply. Maintenance work on the SEGAL pipeline has been extended, affecting flows.

  4. Storage Levels: European gas storage is nearly full, limiting the room for further injections. This could become a concern if demand spikes due to colder weather.

  5. Global Events: Keep an eye on geopolitical developments and any announcements from major oil and gas producers, as these could quickly shift market sentiment.

Given these factors, we anticipate a volatile week ahead with potential for both upward and downward movements in gas and electricity prices. Market participants should remain vigilant and consider hedging strategies to mitigate risk.

 

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)

23/10/2023

118.50

105.00

24/10/2023

118.50

110.50

25/10/2023

120.00

109.00

26/10/2023

118.00

104.00

27/10/2023

117.00

94.50

30/10/2023

128.50

95.00

WEEKLY AVERAGE

120.08

103.00

 

Oil Market Summary: 23/10/2023 to 30/10/2023


Start of the Week:

Oil prices began the week with Brent crude futures at $92.16 a barrel and WTI futures at $88.75 a barrel. The market was focused on the Middle East due to ongoing tensions between Israel and Hamas.


Midweek Movements:

By 25th October, Brent crude had fallen to $88.07 a barrel, a decrease of about 4.4%, while WTI crude dropped to $83.74 a barrel, a decrease of about 5.6%. The decline was influenced by slow economic data from Europe and concerns about global energy demand.



Week's End:

The week concluded on 30th October with Brent crude at $90.48 a barrel, a decrease of about 1.8% from the start of the week. WTI crude also ended at $85.54 a barrel, a decrease of about 3.6% compared to the start of the week.


Key Points:

  1. Geopolitical Tensions: The ongoing conflict between Israel and Hamas continues to add a risk premium to oil prices.

  2. Economic Data: Slow economic data from Europe has weighed on the outlook for energy demand.

  3. Global Events: U.S. military actions and mediation talks have also influenced oil prices.

Forecast for the Upcoming Week: 30/10/2023 to 06/11/2023

The oil market is expected to remain volatile in the coming week, with geopolitical tensions in the Middle East continuing to be a significant factor. The ongoing conflict between Israel and Hamas could escalate, potentially affecting global oil supplies. Additionally, economic indicators from Europe and the U.S. will be closely watched, as they could influence global energy demand. Brent and WTI crude prices may continue to fluctuate, influenced by these geopolitical and economic factors.


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.


 

Ready to Renew?


26 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