Energy Update: Gas and Electricity Prices Last Week (02/04/2024 - 08/04/2024)
Here's a quick look at what happened with gas and electricity prices last week and what we might expect moving forward in the latest weekly energy market update.
Weekly Energy Market at a Glance
This past week in the energy world was full of ups and downs:
Electricity prices changed a lot, hitting a high point mid-week and then going down before the Easter holiday, ending at £61.50 per MWh as of 02/04/2024.
Gas prices also went up and down, starting strong early in the week because of worries about not having enough supply. But as the week went on, prices went down, opening at 65.50 pence per therm on 02/04/2024.
Detailed Market Dynamics
Gas and Power: A Closer Examination
Early Week Trends: Gas prices were high at the start of the week, reflecting concerns about having enough gas. The weather forecast, predicting typical temperatures for this time of year, played a big part in how much gas people thought we’d need, especially for generating electricity.
Supply Adjustments: There was some trouble with getting gas from Norway to the UK because of maintenance work and tests on the pipelines, which initially caused some worry. But, good news came when some planned maintenance was canceled, and we got a bit more liquefied natural gas (LNG) than expected, easing those concerns.
Weather and Demand Fluctuations: As the week went on, windier weather meant we didn't need as much gas for making electricity, which helped lower the demand and prices. The weather also got a bit warmer as we moved into April, which meant even less demand for heating and contributed to the drop in gas prices.
End-of-Week Movements: Just before the Easter holiday, the balance between how much gas we had and how much we needed improved because of the lower demand and steady supply, leading to lower gas prices.
Weekly Weather Watch and Its Impact
The weather really affected what happened this week. Warmer weather towards the end of the week and into the next meant we didn’t need as much gas for heating. Also, more wind meant we could use wind turbines to generate electricity, reducing the need for gas. This shift in weather patterns is shaping what we expect for gas and electricity demand as we start April.
Looking Forward: Post-Easter Market Trends
After Easter, we’re expecting things to calm down a bit in the energy market. The warmer weather and strong supply of gas, especially with no maintenance planned right away and gas storage sites getting ready to stock up again, might lead to lower prices for a while.
A Deeper Dive: Daily Dynamics
Last week’s daily prices showed a clear upward trend, ending with a weekly average gas price of 63.80 p/th and electricity at 56.40 £/MWh. Keeping track of these daily shifts is essential for planning your energy buying.
DAY AHEAD PRICES | Gas (pence per therm) | Electric (£ per MWh) |
02/04/2024 | 73.50 | 70.90 |
03/04/2024 | 68.75 | 63.00 |
04/04/2024 | 67.75 | 57.50 |
05/04/2024 | 68.48 | 69.75 |
08/04/2024 | 65.50 | 61.50 |
WEEKLY AVERAGE | 63.80 | 56.40 |
The week concluded with a general decline in both gas and electricity prices from the week’s start, underlining a transitioning market as it adapts to seasonal changes and supply dynamics.
Oil Market Brief
This past week, the world of oil was on a roller coaster, with prices moving up and down due to various global events, decisions by oil-producing countries, and changes in how much oil we're using. Let's break down what happened and why it matters.
Oil Market at a Glance
End-of-Week Movements: We saw oil prices make small changes as the week wrapped up. Despite some ups and downs, things like the U.S. considering making it easier to borrow money (which could mean more people buying oil) and fewer oil rigs in action in the U.S. helped prevent prices from falling too far.
Midweek Trends: Prices went up in the middle of the week. This was because of ongoing fights and disagreements between countries, especially in Ukraine and the Middle East, and Russia deciding to produce less oil. Even though there was talk about stopping the fighting in some areas, the tension still pushed prices up.
Closing the Week: Prices jumped again as we headed into the weekend. This bump was thanks to a group of oil-producing countries sticking to their plan to not pump out too much oil, ongoing attacks on oil facilities in Russia, and fewer oil rigs working in the U.S., suggesting there might not be as much oil available soon.
Detailed Market Dynamics
Supply Side Adjustments
Russia's move to cut down on how much oil it's producing played a big role in keeping prices up this week. Even though there was a bit of pressure when the U.S. found it had more oil and gasoline than expected, which usually would make prices go down, the overall supply of oil stayed tight.
Demand Fluctuations and Economic Indicators
Good news about the U.S. economy growing a bit faster than we thought and continuous tension around the world kept people interested in buying oil, expecting that they might need more of it soon. These factors, along with the decision by oil-producing countries to keep their output low, have made many think oil prices might stay high for a while.
Looking Forward: Market Outlook
As we step into April, we're keeping an eye on how disagreements between countries, the amount of oil being produced, and how economies are doing around the world might change oil prices. Even though prices have been going up, any big news could shake things up again.
Navigating the Volatile Oil Landscape
For anyone keeping track of oil prices, whether for business or personal interest, staying updated on these global events and decisions is key. Understanding what’s happening can help make sense of why prices change and what might happen next.
Your Energy Guide
Our Weekly Wholesale Market Update gives a side-by-side comparison of the gas and electric market increases. For a wider view, the 12-month report sheds light on the bigger picture.
For day-to-day updates and detailed analysis, turn to our Daily Energy Market Reports. They are a valuable resource for understanding the market.
Advice for Your Business
For advice that fits with the latest market situation, get in touch for a free business energy quote. Our team at the Smart Energy Company is ready to help you make informed choices, tailored to the market’s current state.
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Keep visiting our blog for weekly updates. If you have any questions or need more detailed advice, we’re just a call away. We’ll help you navigate through the market changes with ease and confidence.
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