Energy Market Update - 22 August 2024

The market continued its downward trend yesterday, reflecting reduced panic as recent concerns eased.

Warmer weather expected into September, combined with stable supply fundamentals, could maintain this trend, though geopolitical risks remain a key factor. Norwegian maintenance planned for next month will be closely watched for any unplanned outages as winter approaches.

Tomorrow, Ofgem will announce the new Price Cap effective from 1st October. In yesterday's session, the TTF Front Month contract settled at €37.01, down from €37.96, while the NBP Front Month dropped to 88.65p from 91.46p. Gas flow remains stable, with no unplanned outages and EU storage levels at 90.29%.

This morning, the TTF Front Month remains steady at €37. UK NBP prices are largely unchanged, with the Front Month at 89p and the Front Season at 104p. UK Power saw a slight decrease, with the Front Month Baseload contract at £77. Brent Oil and EUA prices also dipped slightly, with Brent at $76 and EUAs at €72. The UK gas system opened slightly long, with demand forecasted to increase as wind generation drops off in the coming days.