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October 2024 Energy Market Update

The October 2024 energy market landscape was notably shaped by a mix of geopolitical tensions, strategic storage dynamics, and the ongoing shift toward renewable energy. As winter heating demand ramps up, the market faces heightened volatility, driven by renewed conflict in the Middle East. Here is a breakdown of the key highlights from each week in October:

Week of 30th September 2024:
UK gas prices rose by 9% and electricity by 5% as lower-than-average temperatures increased gas reliance. Middle East tensions spurred short-term price volatility despite high European gas storage levels and steady LNG imports. Meanwhile, Norwegian gas fields showed promising production, and Turkey and Greece signed long-term LNG contracts for increased regional security. Increasing demand from data centres poses further challenges for energy decarbonisation.

Week of 7th October 2024:
The Middle East conflict, particularly the Israel-Hamas war, drove gas price volatility, though ample European storage and LNG imports mitigated long-term concerns. Norwegian fields ensured steady output, and EDF’s Flamanville III reactor continued progress towards 2025 full capacity. Additional risks from potential Strait of Hormuz disruptions, combined with increased AI-related data centre energy needs, raised price stability concerns globally.

Week of 14th October 2024:
Gas prices stabilised with robust European storage and supply diversification efforts. Japan increased LNG reserves, and Ukraine announced it would not renew its gas transit deal with Russia, highlighting supply concerns. EDF’s aging nuclear reactors faced financial and operational constraints, raising European supply concerns. Dogger Bank wind project delays underscored supply chain risks in the renewable sector.

Week of 21st October 2024:
Gas prices softened as Israeli conflict risks seemed contained to military targets. Increased UK regasification capacity and renewable energy investments offset concerns about reduced Ukrainian transit. However, IEA forecasts predict rising global gas demand. Concerns arose around European storage levels, with La Niña potentially tightening winter supplies. Significant grid upgrades are required to handle the transition to renewables.

Week of 28th October 2024:
Warmer forecasts eased winter gas demand. Tensions with Hezbollah and Iran risked Strait of Hormuz disruptions, supporting higher prices. TotalEnergies delayed LNG projects, potentially straining global capacity until 2027. Negative power prices in Europe due to renewable expansion raised grid stability concerns. Waste-to-energy incinerators’ emissions complicate UK net-zero goals, possibly impacting fossil-fuel generation costs.


October's energy markets show winter demand risks amid Middle East tensions, high global LNG demand, and European supply adjustments. Securing long-term contracts offers cost stability; short-term contracts remain viable for those tracking market fluctuations actively.

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

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