09/05/2023 - Weekly Wholesale Energy Market Update

See below for the latest weekly wholesale energy market movements that have happened in the last week.

Oil and Markets

Brent crude saw over 2% gains on Monday, pushing up to $77.01 per barrel as US recession fears eased and traders began to see the three-week dip as a bit of an overreaction. Strong employment figures did their part in raising the price, however some investors are still concerned that this could lead the Fed to double down on its hawkish stance and keep interest rates elevated for longer. The S&P 500, confused by these mixed signals, saw only a 0.05% change, leaving the index at $4138. This is likely a pause ahead of the scheduled Congress meeting this week, which will attempt to resolve a three-month standoff on the $31 trillion dollar debt ceiling to avoid a default before the end of May.

Gas and Power

As gas and power markets in the UK have yet to awaken after the most recent bank holiday, reported prices are as of 5 May. UK front-month gas finished the week with a strong decline of 3.7%, settling at 80.51 p/therm. UK front-month power, however, saw a reversal into a 1.82% gain, settling at 89.01 £/MWh, breaking an eight day streak of losses. This comes most likely as a technical correction as fundamentals remain strong, showing good weather and wind performance into the start of next month. European gas and power markets show minor gains as similar technical corrections adjust prices after days of decreases, however gains are capped at around 1% on average.

How the market has opened each day:

7 day averages

Gas (pence per therm) 84.24

Electric (£ per MWh) 88.34

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