Energy Market Update - Friday 21st July
Recently gas and electricity prices have fallen to the lowest level we have seen in the last 18 months as demonstrated in the graphs below. Customers with contracts up for renewal between now and April 2024 would be strongly advised to look at arranging renewal contracts. With the start of the winter months on the horizon prices may start to increase again and by contracting now will protect yourselves against any rises in the market. The team at Dukefield Energy have contracted a number of customers this week producing large savings on their current contracts. Please get in touch where we can help and support.
Market Drivers
Gas
Falling
After an extended period of maintenance, gas flows from Norway to the UK have significantly increased following the return to action of several of their sites.
Increasing levels of UK storage are improving supply security as we approach winter benefitting the wider sentiments in the market.
Rising
The UK continues to experience a lot of competition for LNG cargoes as Asia deals with its increased levels of demand and wider Europe closes in on their winter storage targets.
Whilst the news of increased LNG projects in the US is positive, they are currently facing a labour shortage restricting their progress.
Electricity
Falling
Consumer behaviour is likely to cause a decrease in levels of power demand as we head into the summer holiday period thereby decreasing the cost of power.
The UK's reliance on gas-for-power is proving beneficial to the UK baseload contacts as they continue to track the losses of their gas contract equivalents.
Rising
Wind generation levels dropped sharply this week and then remain below seasonal norms.
EDF have confirmed the potential for reduced output from 2 of its French nuclear plants due to the inability to sufficiently cool the reactors in light of high temperatures and low precipitation.
info@dukefieldenergy.co.uk
0345 4022 461