Energy Market Update - 08 April 2024

The energy market witnessed a slight uptick to conclude the week, influenced by windy weather which drove spot electricity prices to exceptionally low levels.

Over the weekend, gusty conditions significantly impacted the electricity market, with prices tumbling close to zero due to a surge in wind power production. This trend was juxtaposed with a dip in gas supply nominations, although the anticipated warmer weather this week is expected to mitigate the impact, allowing for net injections into storage facilities. The TTF and NBP Front Month contracts observed modest increases on Friday, settling at €26.61 and 66.08p respectively.

Asgard's unplanned outage has caused a decrease in gas flow levels, while Russian gas nominations also saw a reduction. With EU gas storage reported at 59.90% capacity, and three LNG vessels expected in the UK, the market is adjusting to these supply dynamics. Moreover, the TTF Front Month contract experienced a slight decrease this morning, reflecting the market's response to current supply and demand factors.

UK power and gas markets are balancing with minor fluctuations observed in contracts. Despite geopolitical tensions and supply disruptions, such as the drone attack on Ukraine's Zaporizhzhia nuclear power plant, the market remains relatively stable. Brent Oil and EUAs prices have shown some movement, while Henry Hub and JKM remain steady, indicating a complex but stable energy market as we move deeper into spring.