Energy Market Update - 19 August 2024

Energy markets exhibited stability, with minor fluctuations reflecting ongoing geopolitical tensions and weather-related forecasts. Natural gas prices saw slight movements, while power prices remained steady amidst predictions of strong wind output this week.

In the gas market, the NBP Day-Ahead price rose to 79.50p/therm as UK systems opened short, influenced by reduced Langeled flows and steady UKCS nominations. The ongoing exports to the continent were incentivized by the NBP discount to TTF. Pan-European gas storage levels remain robust at 89.4%, with continuous injection efforts ahead of winter.

UK power prices showed a slight increase, with Day-Ahead Base settling at £64.24/MWh. The return of the Viking interconnector and strong wind generation forecasts are expected to suppress demand for gas-fired power. The upcoming week's wind generation is projected to average 12.3 GW, further stabilizing the power market.

Other key markets displayed marginal changes. Brent crude fell slightly to $79.68/bbl, reflecting cautious market sentiment. Carbon prices settled at €72.52/tonne, while coal remained steady at $130.11/tonne, supporting a balanced outlook as temperatures and demand normalize.