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 UK energy market last week was characterised by a variety of influencing factors, including steady supply levels, changing weather conditions, and geopolitical events, which led to fluctuations in gas and electricity prices.
Weekly Gas and Power Market Review: 05/02/2024 - 12/02/2024
Detailed Price Movements:
Start of the Week: On 05/02/2024, gas prices were at 70.20 p/th and electricity at £56.75/MWh, reflecting a market well-supplied and influenced by strong wind energy production.
Midweek Trends: Prices saw a modest increase, with gas prices peaking at 72.55 p/th on 06/02/2024 amidst a temporary dip in supply due to maintenance activities in Norway and a slight increase in local consumption due to decreased windspeeds.
End of the Week: The week concluded with gas prices decreasing to 68.48 p/th on 09/02/2024, as the maintenance issues in Norway were resolved and the forecast for warmer weather pointed towards a reduced heating demand. Electricity prices followed a similar pattern, closing at 66.50/MWh.s.
Current Market Rates
The market opened on 12/02/2024 with gas at a lower rate of 65.00 p/th and electricity at 64.40/MWh. These rates demonstrate the market's reaction to a well-supplied system and expectations of less heating demand due to milder weather conditions.
Key Influences on the Market:
Weather conditions had a notable impact on both gas and electricity prices, particularly changes in temperature and wind generation capacity.
Supply levels remained robust, with LNG deliveries and production from the UKCS and Norway contributing to a balanced market.
Geopolitical tensions, including the UK/US airstrikes, introduced potential risk factors that could influence future energy prices.
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.
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) |
05/02/2024 | 70.20 | 56.75 |
06/02/2024 | 72.55 | 75.35 |
07/02/2024 | 71.25 | 69.00 |
08/02/2024 | 69.45 | 60.00 |
09/02/2024 | 68.48 | 66.50 |
12/02/2024 | 65.00 | 64.40 |
WEEKLY AVERAGE | 69.49 | 65.33 |
Forecast for the Upcoming Week: 12/02/2024 - 19/02/2024
The market outlook for the upcoming week suggests that the demand for heating may decrease due to milder weather, which could potentially lead to lower gas prices. However, supply levels and geopolitical developments will need to be monitored closely. For those with pending energy contract renewals, this could be an opportune moment to review market conditions and secure favourable terms.
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: 29/01/2024 - 05/02/2024
Overview:
The oil market experienced significant price movements due to a confluence of economic developments, geopolitical tensions, and unexpected supply disruptions.
Beginning of the Week: The week opened with oil prices reaching a two-month high, driven by positive economic data from the U.S. and stimulus signals from China. Brent crude futures climbed to $83.55 a barrel, while WTI crude hit $78.01. The spike was supported by a considerable drawdown in U.S. stockpiles and persistent supply concerns from the Middle East.
Mid-Week Movements: Volatility continued through the week. On 30/01, oil prices dipped as China's property sector woes stoked demand worries. The following day, however, saw a recovery amid higher global growth forecasts and increasing tensions in the Middle East.
End of the Week: As the week drew to a close, oil prices softened slightly, reflecting the market's assessment of a potential ceasefire between Israel and Hamas, and a major U.S. refinery shutdown. Additionally, U.S. labor data suggested less likelihood of imminent interest rate cuts, influencing market sentiment.
Key Influencing Factors:
Economic Indicators: The impact of U.S. job growth and Chinese economic measures heavily influenced oil demand projections and pricing trends.
Geopolitical Tensions: Escalating conflicts in the Middle East, particularly between Israel and Hamas, and the ongoing situation in Venezuela, remained key drivers of market uncertainty.
Supply Disruptions: Adverse weather in the U.S. and changes in oil production from Libya and Norway caused disruptions, affecting global oil supply levels.
Market Outlook:
In the immediate future, the oil market is poised to respond to further geopolitical developments, significant economic data from key economies, and any new changes in oil supply. Stakeholders should remain vigilant, as these elements will likely dictate oil price trajectories in the weeks to come.
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.
Check our historical reports for a more in-depth review of how the market is shaping up.
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