ENERGY MARKET UPDATE – 3rd June

Energy Market Update

Nordic Flows and Pipeline Activity: Inbound flows from Nordic regions to the UK have surged following the completion of planned outages at Kollsnes and Troll. The Langeled pipeline, one of the three main pipelines supplying the UK, has absorbed all the additional flow, with an increase of 35 million cubic meters per day (mcm/d).

EU Storage Levels: EU aggregated storage levels have risen by 0.22%, reaching 69.27%. This translates to an average daily injection rate of 0.26% over the past week, indicating a positive trend toward adequate storage levels for the upcoming winter. This development may help ease pressure on prompt season pricing.

Market Movements:

• Power & Gas Markets: Despite an upward re-forecast of renewable generation expected over the next two weeks, the markets experienced a bullish day. Front-month UK Power increased by 1.03%, finishing at £73.40, and front-month NBP rose by 2.17%, ending at 83.36p.
• Carbon Markets: December 2024 EUA’s gained 1.67%, reaching €75.09, and UKA’s saw a 3.02% increase, closing at £46.38.
• Oil Market: Brent crude fell by 1.28%, closing the day at $82.53.

On a Separate Trading Day:

• Power & Gas Markets: Front-month UK Power finished at £72.90, up by 0.48%, and front-month NBP increased by 0.92% to 81.55p.
• Carbon Markets: December 2024 EUA’s fell by 0.93%, landing at €73.89, and UKA’s decreased by 0.60%, closing at £44.98.
• Oil Market: Brent crude fell by 0.69%, ending the day at $83.64.

Market Trends: The NBP traded relatively sideways today, following a period of volatility after the market aligned with the TTF rally post-bank holiday.