Energy Market Update - 15 May 2024

Yesterday's session displayed minimal volatility with minor increases in front month contracts, reflecting underlying market nerves and unchanged fundamentals. The overall market environment remains steady with expectations set for upcoming price cap adjustments.

Key settlements showed the TTF Front Month at €29.67 and the NBP Front Month at 71.96p, with consistent flows and supply levels maintaining market balance.

Power prices also held firm with the UK Front Month Baseload at £65. Meanwhile, Brent crude experienced a slight decrease to $82, influenced by US inflation data and OPEC's steady demand forecast. The gas and power sectors show resilience amid ongoing maintenance and geopolitical tensions.

Market trends indicate cautious optimism with slight adjustments in key contracts. The EU gas storage is above last year's levels, and UK power prices are influenced by reduced wind generation forecasts. The broader energy landscape suggests a stable but alert market as geopolitical and environmental factors continue to play a significant role.