Energy Market Update - 09 April 2024

Yesterday's energy market witnessed an uptick as supply constraints continued, particularly with ongoing process issues at Asgard. Despite these challenges, price movements remain within a familiar band, signalling market acclimatisation.

Prices saw an upward trend, with the TTF and NBP Front Month contracts closing higher at €27.91 and 69.71p respectively, reflecting the tight supply dynamics. EU gas storage levels have recovered, now back to 60%, illustrating a replenishing storage system amidst supply concerns. The unplanned outage at Asgard and variations in Russian gas nominations add complexity to the supply scenario, although the market has shown resilience with prices stabilising within recent weeks' range.

The UK gas and power sectors are adjusting to the supply and demand fluctuations, with key contract prices indicating market sentiment. The Front Month TTF contract holding steady at €28, alongside adjustments in the NBP Front Month and UK power prices, reflects a cautious but steady market outlook. The presence of LNG vessels due in the UK offers some supply security, albeit with the backdrop of additional Norwegian maintenance impacting near-term supply.

Market indicators such as Brent Oil, EUAs, Henry Hub, and JKM prices provide a broader context of energy market trends, with slight variations reflecting global market sentiments. The UK's energy landscape is marked by adjustments in demand due to weather patterns and wind generation, impacting gas for power generation and heating requirements. Looking ahead, the weather forecast suggests changeable conditions with potential impacts on demand and supply dynamics.