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February 2024 Energy Market Update

As we enter further into Quarter 1, it's paramount to reflect on the dynamic shifts within the energy market, particularly in gas and electricity wholesale pricing. Here's a summary of the market reviews conducted on a weekly basis throughout the month:

Week of February 7th 2024 - A Strategic Outlook

At the start of February, the energy market showed signs of steadying after months of price drops. We advised clients with upcoming Q1 2024 renewals to lock in contracts promptly to mitigate costs. With industry activity picking up and factors like expected cold weather in the UK and unexpected shutdowns at Norwegian gas facilities, clients were advised to act swiftly to avoid potential delays and increased renewal expenses.

Week of February 14th 2024 - Strategic Adaptation

During the second week, the market continued its trend of stabilisation, requiring a careful approach to long-term pricing strategies. While gas and electricity prices remained under pressure due to warm temperatures and low demand, confidence in navigating through the winter period remained robust. This week stressed the importance of watching market trends for 2024/25 renewals and showed the resilience of confidence in managing market uncertainties.

Week of February 21st 2024 - Resilience Amid Uncertainty

As February neared its end, wholesale energy prices kept dropping, urging quick action on remaining Q1 renewals. Despite uncertainties like a temporary halt on LNG terminal expansions, the market stayed strong. With lots of gas stored in Europe, questions arose about what to do with the surplus as summer neared. Stakeholders were urged to make decisions based on their own risks and budgets.

Week of February 28th 2024 – Navigating Wholesale Energy Dynamics
In the week of February 28th, reductions in wholesale pricing persisted, indicating a bearish trend. Urgency was advised for finalising Quarter 1 renewals to ensure timely registration. Positive developments included increased LNG shipments and approvals for new nuclear reactors in the UK, suggesting some bullish aspects. However, challenges like outages and offline reactors persisted. Despite falling prices overall, uncertainties lingered about long-term trends. Businesses were urged to consider contract lengths carefully based on their risk tolerance.

Concluding Thoughts: Strategising for Success

In February 2024, the energy market showed it could adapt and stay strong despite changes. Looking ahead, making smart decisions, keeping an eye on trends, and aligning strategies with business goals will be crucial for success. Watch this space for more insights and strategies as we keep track of the ever-changing energy market.

For further insights and information on the dynamic landscape of the 2024 energy market, feel free to contact us:

☎️ 01738474630
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