Energy Market Update - 10 June 2024

Norwegian output increased as planned, ending the week softly after pipeline maintenance was completed.

The natural gas market settled after resolving the Norwegian pipeline issues, though it remains cautious about global events. Temperatures are expected to stay below seasonal norms this week, then rise above average in the following weeks.

The resolution of the Norwegian pipeline crack led to increased gas flows, stabilizing the market. Despite this, there remains a nervous undertone due to potential global disruptions. European gas storage levels are robust, and only one LNG vessel is scheduled to arrive in the UK soon, indicating steady supply.

UK power prices are showing slight fluctuations, influenced by varying wind speeds and cooler temperatures. Renewable generation is expected to decrease later this week, which may tighten the supply. Oil prices remain stable, with market participants keeping an eye on demand concerns and US interest rate decisions.

Overall, the market is adjusting to recent maintenance completions and upcoming weather changes, with steady supply levels and cautious optimism about future demand. The energy market continues to balance supply security and demand fluctuations, maintaining a stable outlook as the summer progresses.