Energy Market Update - Friday 14th July

 
 
 

In the last two weeks gas and electricity prices have fallen to the lowest level we have seen in the last 18 months as demonstrated in the graphs below. Customers with contracts up for renewal between now and April 2024 would be strongly advised to look at arranging renewal contracts. With the start of the winter months on the horizon prices may start to increase again and by contracting now will protect yourselves against any rises in the market. The team at Dukefield Energy have contracted a number of customers this week producing large savings on their current contracts. Please get in touch where we can help and support.

Market Drivers

Gas

 
 

Falling

  • Increasing flows of gas from Norway are helping to bring down near-curve contract prices and this should increase further as the scheduled maintenance draws to an end through Jul-23.

  • Levels of storage in Europe are quickly reaching their target which could result in lower competition once the necessary total is reached.

Rising

  • Following 5 LNG cargoes arriving in Jun-23, low numbers are expected again for the current month with just 2 scheduled to date which will limit the UK's ability to increase their storage levels.

  • Potential for increased Asian demand for LNG could further increase demand for the fuel with competition already tough for the resource.

Electricity

 
 

Falling

  • Wind generation is expected to pick up during the first part of next week, limiting the UK's reliance on more expensive gas-fired generation (although forecasts suggest the opposite may be in effect come the end of the week).

  • The impact of higher costs of both energy and wider consumer products is causing a drop in the overall UK energy demand.

Rising

  • Lower outputs from France are likely as their nuclear generation may struggle with cooling issues as a result of high temperatures and low precipitation levels.

  • Siemens Energy is facing a large-scale issue with their wind turbines, potentially affecting between 15% and 30% of their total global output of 132GW.

info@dukefieldenergy.co.uk

0345 4022 461


 
Nicole Farrimond