Energy Market Update - 23 April 2024

A bearish session to kick the week off after a series of bullish ones last week, influenced by global news and Middle Eastern tensions.

Despite recent volatility, the energy market maintains a holding pattern. Strong gas storage projections for next winter provide a buffer, assuaging concerns about refill requirements by summer's end. Key contracts like the TTF and NBP Front Month saw declines, with TTF Front Month closing at €29.31 from €30.76, and NBP Front Month at 73.99p from 77.40p.

Supply dynamics are stable with no unplanned outages and steady flows reported across major pipelines, including Russian nominations. EU gas storage is robust at 62.12% capacity, supporting a balanced supply outlook despite ongoing outages and upcoming maintenance in Norwegian assets. UK energy demand is below seasonal norms, with wind generation expected to pick up towards April end.

Market prices reflect cautious sentiment, with UK and EU energy contracts showing minor adjustments. Oil and EUA prices are relatively stable, with Brent crude at $87 and EUAs at €66. The LNG and gas market also show slight movements, hinting at a steady, yet vigilant market environment as we approach the warmer months.