Energy Market Update - 12 September 2024
The energy market experienced a slight increase, driven by reduced gas supply from Norway and higher oil prices as Hurricane Francine disrupts US production.
UK gas prices edged up, with the NBP Day-Ahead at 88.00p/therm, reflecting a tighter supply due to the extended maintenance at Kollsnes and forecasts of lower temperatures across Europe. The system opened 19mcm/day long, supported by increased UKCS terminal receipts and steady Norwegian exports, while LNG send-out remained stable.
UK power prices followed the gas market, with the UK Day-Ahead Base settling at £78.00/MWh, driven by cooler weather reducing renewable generation. The UK continues to see strong supply with additional LNG shipments expected and pan-European gas storage at 93.19%. The UK Front Month Baseload contract rose slightly to £74/MWh.
Brent crude rose to $70.61/bbl amid concerns over supply disruptions from Hurricane Francine. EU carbon prices also increased to €66.40/tonne, reflecting market caution as winter approaches and energy demand rises. Coal prices remain stable at $117.54/tonne.