In July 2024, UK wholesale energy prices have shown minimal movement, influenced by geopolitical factors, weather forecasts, and market dynamics. Longer-term contracts for 2026-27 offer better value amidst a stable yet uncertain market environment. Geopolitical tensions and supply disruptions caused gas price hikes late in the month. Here’s a breakdown of the key highlights from each week in July:
Week of 4th of July 2024: Stability Amid Election Anticipation
UK energy prices remained flat, continuing a four-week trend. Long-term supplies for 2026-27 offer better value. With the general election imminent, expectations lean towards a Labour victory, which could impact commercial energy buyers by lifting the ban on onshore wind developments.
Week of 8th of July 2024: Mixed Market Signals Amid Policy Shifts
Energy prices remained stable, balancing upward and downward pressures. Labour's election victory promises more renewable generation. US LNG export resumption and upcoming EU gas storage completion offer greater supply security, while EDF's financial issues and Middle East tensions add uncertainty.
Week of 15th of July 2024: Narrowing Price Gaps and Contract Considerations
Short-term risk premiums dropped, reducing gas and electricity prices for 2024-25. Long-term contracts fell slightly, making 3-year deals appealing. Labour ended the onshore wind ban, boosting renewable capacity. Concerns over EDF's funding and US hurricane impacts add volatility.
Week of 22nd of July 2024: Stability and Historical Price Comparison
Minimal price movement continued, with long-term contracts offering good value. Historical price comparisons show current rates are closer to the market floor than the ceiling. The Labour government's renewable push and ongoing geopolitical tensions highlight the importance of strategic contract choices.
Week of 29th of July 2024: UK Gas Prices Rise Amid Supply Disruptions & Geopolitical Uncertainties
UK wholesale gas prices increased, with one-year forward contracts up by 3.65%, due to outages at major LNG facilities in Australia and the US, and decreased Norwegian gas flows. EU and UK storage levels remain firm, while upcoming Norwegian maintenance and an active US hurricane season suggest tighter supply. Geopolitical uncertainties also contribute to higher prices.
For further insights and information on the dynamic landscape of the 2024 energy market, feel free to contact us:
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