Energy Market Update - 22 July 2024

Energy markets retreated slightly on Friday following a global IT outage. As systems returned to normal, the market continued its recent trend of slight declines.

Forecasts predict above-normal temperatures in the coming weeks, and gas storage injections in Europe are increasing in preparation for winter. The TTF Front Month contract settled at €32.17 (from €32.67), and the NBP Front Month at 74.73p (from 76.04p).

This morning, the Visund and Kristin fields reported unplanned outages, resulting in a slight reduction in flow levels to 323 mcm (from 335 mcm). Russian gas nominations were also slightly down at Velke Kapusany (38.7 mcm) and Sudzha (40.9 mcm). EU gas storage is 82.53% full, with one LNG vessel expected in the UK in the next couple of weeks. The TTF Front Month contract opened at €31, down €1 from the previous settlement.

Key contract prices include TTF Front Month at €31 and Front Season at €37, and NBP Front Month at 75p and Front Season at 95p. The UK Gas NBP spot is at 75p, and UK Power DA is at £74. UK power prices show the Front Month Baseload contract at £66 and the Front Season at £84. Brent Oil is at $83, EUAs at €66, Henry Hub at $2.13, and JKM at $12.12, with TTF Equiv at $10.27.

Overall, market activity was subdued on Friday due to the IT outage. As systems recovered, the focus shifted to supply security and storage levels amidst varying weather forecasts. The market remains complex but stable as the energy sector navigates through these challenges.