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
This past week in the UK energy market has seen a complex interplay of factors driving the movements in gas and electricity prices. The week was marked by fluctuations influenced by weather conditions, supply dynamics, maintenance activities, and demand forecasts.
Weekly Gas and Power Market Review: 19/02/2024 - 26/02/2024
Detailed Price Movements:
Start of the Week: The week commenced on 19/02/2024 with gas prices at 56.25 p/th and electricity prices at £56.75/MWh. The market was influenced by mild weather forecasts and high storage levels, indicating a potential for price adjustments.
Midweek Adjustments: Prices saw varied movements through the week. A notable decline occurred on 20/02/2024, with gas dropping to 55 p/th, attributed to bearish fundamentals and a well-supplied market. Electricity prices reflected similar trends, adjusting in response to the gas market and wind generation outputs.
End of the Week: Towards the end of the week, gas prices attempted a recovery, peaking at 58.67 p/th on 22/02/2024, driven by colder weather forecasts and increased demand expectations. However, this bullish sentiment was short-lived as prices adjusted down to 57.5 p/th on 23/02/2024, amidst strong Norwegian exports and high LNG stock levels.
Current Market Rates
As the new week began on 26/02/2024, the market opened with gas prices slightly higher at 58.75 p/th and electricity at 61.50/MWh. These opening rates reflect the ongoing adjustments in the market in response to changing supply and demand dynamics.
Key Influences on the Market:
Weather Conditions: Fluctuating weather forecasts, particularly the arrival of colder weather, influenced heating demand and market prices.
Supply Levels: The market remained well-supplied, thanks to high storage levels and the steady flow of LNG cargoes, impacting price movements.
Demand Shifts: Changes in demand, especially for heating and power generation, were key drivers behind the price fluctuations observed throughout the week.
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) |
19/02/2024 | 56.25 | 56.75 |
20/02/2024 | 58.00 | 53.50 |
21/02/2024 | 59.00 | 52.70 |
22/02/2024 | 59.00 | 56.50 |
23/02/2024 | 58.50 | 61.50 |
26/02/2024 | 58.75 | 61.50 |
WEEKLY AVERAGE | 58.17 | 57.91 |
Forecast for the Upcoming Week: 26/02/2024 - 04/03/2024
The market outlook remains subject to weather conditions, supply stability, and demand fluctuations. Stakeholders should closely monitor these factors9as they navigate the energy market, especially with the anticipation of colder weather potentially affecting demand and prices.
Your Weekly Guide
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Oil Market Summary: 19/02/2024 - 26/02/2024
Overview:
The oil market experienced fluctuations over the past week, influenced by adjustments in global demand forecasts, geopolitical tensions, and shifts in supply dynamics.
Beginning of the Week:The week started with oil prices showing volatility, as the International Energy Agency (IEA) slightly adjusted its global demand forecasts for 2024. This, coupled with economic contractions in Japan and the UK, influenced market sentiment. Brent crude settled at $83.56 a barrel on 20/02/2024, reflecting these mixed signals.
Mid-Week Movements:By midweek, concerns over global demand continued to pressure oil prices, with Brent futures settling 1.5% lower at $82.34 a barrel on 21/02/2024. Geopolitical tensions, particularly the ongoing conflict between Israel and Hamas, added complexity to the market's direction, despite potential supply tightness indicated by market structures.
End of the Week:Towards the week's end, prices rebounded slightly amid continuing hostilities in the Middle East and concerns over near-term supply tightness. However, a significant build in U.S. crude inventories limited the gains, with Brent crude settling at $83.67 a barrel on 23/02/2024.
Key Influencing Factors:
Geopolitical Tensions: Ongoing conflicts in the Middle East, particularly between Israel and Hamas, and increased hostilities near Yemen by the Iran-aligned Houthis, played a significant role in market dynamics.
Global Demand Concerns: Adjustments in demand forecasts by the IEA and economic indicators from the U.S., Japan, and the UK influenced market sentiment towards the demand outlook.
Supply Dynamics: Signs of near-term supply tightness and inventory builds affected price movements, with refineries returning from maintenance affecting stockpile levels.
Market Outlook:
Looking ahead, the oil market remains sensitive to geopolitical developments, economic indicators, and supply adjustments. Stakeholders should closely monitor these factors as they are likely to influence price trajectories 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.
Check our historical reports for a more in-depth review of how the market is shaping up.
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