Energy Market Update - 23 February 2024

The NBP market is experiencing a significant downturn, reaching lows not seen in years, due to strong supply and a forecast of mild and windy weather.

Despite entering a period of traditionally lower gas demand, EU gas storages remain at about 65% capacity.

Cooler weather is expected in the UK from today until next Wednesday, potentially increasing demand for heating and supporting day-ahead prices.

However, the UK's energy system is currently facing a shortfall, as the latest demand forecast falls 30mcm below the seasonal norm, even with the drop in temperatures.