ENERGY MARKET UPDATE – 30th May

The UK front-month gas market saw its eighth consecutive day of gains, with prices reaching 87.7p, marking the highest level since early January. On the day, front-month UK Power ended at £77.00, rising by 2.60%, while front-month NBP climbed 4.29% to 86.00p. Carbon Dec24 EUA’s increased by 1.35% to €77.24, and UKA’s rose by 2.42% to £44.39. However, Brent crude experienced a slight decline, falling by 0.78% to close at $82.54. The weather forecast for the UK over the next week indicates slightly variable temperatures around seasonal norms, which may exert a bearish influence on prompt UK gas prices due to decreased demand for heating as temperatures begin to rise. Meanwhile, EU aggregated gas storage continues to see further injections, currently standing at 67.7% full. This level is 17% above the 5-year average, although the rate of injections is somewhat weaker compared to previous years. This energy market update highlights significant changes and trends that stakeholders should monitor closely.

Following an 11-day bullish streak, UK Gas & Power showed signs of softening today, with the beginning of retracement. Front-month UK Power dropped by 3.31% to £74.50, and front-month NBP fell by 3.87% to 82.03p. Carbon Dec24 EUA’s saw a slight dip of 0.08% to €75.75, while UKA’s increased by 3.26% to £45.93. Brent crude finished the day at $81.76, marking a rise of 0.48%. These movements highlight the ongoing volatility and the complex factors influencing the energy market, including temperature forecasts, storage levels, and geopolitical events. Staying informed with the latest energy market update is crucial for making strategic decisions in managing energy needs and costs.