William Hoyer Millar

UK Energy Prices Pump as Supply Risks Loom: Gas, Power, and Renewables Face Winter Challenges - 30.09.24. Today’s UK energy market opened with modest gains in both gas and power prices. The NBP Day-Ahead gas price settled at 91.50 p/therm, reflecting a 1.70 p/therm increase from the previous session. This price movement is driven by concerns over supply constraints, with Norwegian production still facing challenges, particularly at Nybro and Kristin facilities. These issues, coupled with a lack of LNG regasification nominations, have tightened the UK system, which opened 12 mcm/day short this morning. Flows from Norway through Langeled are lower, and Vesterled is currently not exporting gas. The overall gas flow was measured at 290.5 mcm/day, the highest recorded exit nominations in over a month, yet the market remains wary as the risk of further supply disruptions continues, especially with winter approaching. In terms of storage, no withdrawals from medium-range storage (MRS) sites were observed, while Rough continues with steady injections. Warmer temperatures for early October are forecast, with a potential peak on October 6th, pushing temperatures nearly two degrees above seasonal norms. Windspeeds are predicted to stay above average early this week, offering a boost to renewable generation. However, a dip in wind generation is expected between October 2nd and 5th. The UK nuclear output remains below full capacity, and further reductions are expected, with output dropping to 4.0 GW by the weekend. Power prices saw similar upward momentum, with the Day-Ahead Base price settling at £76.80/MWh, a significant increase compared to Friday. Day-Ahead Peak prices were even more pronounced, rising to £86.01/MWh. Spot contracts saw the largest gains, driven by the weather forecast and ongoing concerns over gas supply. Looking ahead, power prices for Q125 continue to rise, with the market pricing in potential further supply squeezes as winter progresses. In the wider energy market, Brent crude oil for November delivery settled at $71.98 per barrel, ticking up by $0.38. Coal prices for delivery in 2025 also showed some movement, rising by $2.77 to $123.77/tonne, as global markets continue to balance supply and demand. As we head into October, market participants are preparing for the onset of colder weather and the increased demand that will follow. Supply risks from Norwegian fields and global LNG flows are being carefully monitored, while renewable generation, particularly wind, will play a critical role in offsetting these supply concerns. With temperatures expected to dip below average after October 8th, the balance of supply and demand in the UK energy market will likely tighten further. Traders and stakeholders will continue to watch geopolitical developments, weather forecasts, and the ongoing challenges in gas and power supply as we move towards the end of the year.

10

As the UK #energy #market gears up for colder weather, rising demand and tightening supply conditions are driving up prices, with market participants already preparing for the volatility of the upcoming winter months. The UK NBP Day-Ahead gas price settled at 88.00 p/therm, reflecting a 2.75 p/therm increase from the previous day. The market has been bolstered by a combination of cooler weather across Europe and a five-day extension to the maintenance outage at Norway’s Kollsnes gas processing plant. The plant is now scheduled to return to full operation on 18th September, but its curtailed capacity of 52 mcm/day has already lifted European hub prices. UK demand has risen sharply as temperatures are forecasted to drop significantly below seasonal norms, with the coldest point expected on Friday when temperatures are predicted to fall 5-7°C below the five-year average. The UK gas system opened today with a surplus, running 19 mcm long. UKCS terminal receipts increased to 88.8 mcm/day, up by 9.4 mcm from yesterday, while Norwegian flows to the UK were also slightly higher. Total LNG send-out remains steady at 10 mcm/day, with storage withdrawals increasing in response to the colder weather. The UK has two LNG tankers scheduled to arrive, one at the Isle of Grain today and another in three weeks, which will help support the system in the near term. Meanwhile, Europe’s storage levels remain robust at 93.19% full, ensuring a buffer against the seasonal demand spike. Looking at gas contracts, the Oct24 price rose by 2.73 p/therm to 87.31 p/therm, while the Winter 2024 contract increased by 1.63 p/therm to settle at 97.19 p/therm. There is growing concern among market participants about potential price volatility in the months ahead, with the Q1 2025 contract now at 100.57 p/therm, a 1.35 p/therm increase from yesterday. On the power side, the UK Day-Ahead baseload price surged to £78.00/MWh, an increase of £27.96/MWh compared to the previous session. The increase reflects the upward movement in gas prices and reduced wind generation. Forward power contracts are also responding to these movements, with the Winter 2024 base contract settling at £85.50/MWh. Despite this rise, supply fundamentals remain stable, with the UK benefiting from healthy interconnector flows and stable nuclear generation. Oil markets also saw upward pressure today, with Brent crude rising to $70.61/bbl, a $1.42/bbl increase from the previous day, driven by concerns over supply disruptions from Hurricane Francine. Coal prices followed suit, with the API2 Cal Y+1 contract increasing to $117.54/tonne. With colder weather and supply constraints tightening the market, participants will be closely monitoring both demand and key infrastructure developments over the coming days. All eyes remain on Norway and the potential for more volatility ahead of the winter heating season.

10

2 Comments

Daily UK #Energy #Market Update –Monday 2nd December 2024: Today’s energy markets paint a dynamic picture with fluctuating conditions influencing gas, power, and renewables. As of this morning, the UK's gas system opened long by 12 mcm/day, supported by slightly above-seasonal-normal temperatures. Gas contracts continue to edge upward, influenced by the EU's increased storage fill mandates. Day-Ahead NBP prices stood at 116.30 p/therm, reflecting a 0.95 p increase from the previous session. Seasonal forward contracts also saw gains, with Winter 2025 now priced at 108.57 p/therm. On the power side, Day-Ahead baseload prices decreased to £94.11/MWh, a notable dip from last week. This comes amidst reduced wind generation today, expected to decline by 7 GW before rebounding midweek. Nuclear capacity remains constrained due to ongoing outages at several UK sites, including Sizewell and Heysham. However, the Sizewell B-1 reactor's planned return on 5th December should offer some relief. Internationally, geopolitical tensions added complexity to the gas supply landscape. Russian flows dropped by 3%, following disruptions linked to an arbitration case between OMV and Gazprom. Despite these concerns, LNG imports remain robust, with 12 carriers en route to the UK over the coming weeks, bolstering energy security. Oil prices remain subdued, with Brent crude trading at $72.94/bbl, while coal prices stabilized at $122.80/tonne. Carbon markets also moved slightly upward, with EUA Dec-24 contracts closing at €68.40/tonne. The UK faces a mixed weather outlook this week, with sharp temperature fluctuations expected before stabilising around seasonal norms by 8th December. Wind power variability will likely shape gas reliance over the coming days, maintaining a delicate balance in supply and demand dynamics. Stay tuned for tomorrow’s update as we continue to monitor the impact of these developments on market trends and pricing.

8

Winter Fears Loom as UK Energy Markets Surge - UK energy markets saw a strong upward trend today. Front-month UK Power surged by 2.29%, closing at £76.00. This rise is driven by growing demand forecasts and concerns over tightening supply as winter approaches. Market participants are closely watching how this will impact energy costs in the coming months. In the gas market, front-month NBP prices rallied, finishing at 89.95p, a 2.41% increase. The gas rally reflects uncertainty surrounding global LNG supplies, with particular attention on Europe’s storage levels. This rise is expected to continue if supply disruptions persist through the colder season. Carbon markets saw more mixed results, with December 2024 EUAs inching up to €66.54, a modest 0.06% gain. On the other hand, UKAs performed more strongly, closing at £42.52, a 1.84% rise. Industrial demand and expectations of tighter supply in the near term are supporting these gains in the carbon markets. Brent crude oil prices also experienced growth, closing at $71.50, a 0.62% increase. Oil markets remain volatile, with OPEC+ production cuts and global economic conditions continuing to affect prices. These factors, coupled with supply disruptions, are shaping a complex outlook for the remainder of the year. Globally, attention is focused on Australia’s Ichthys LNG plant, which remains at reduced capacity. With both liquefaction trains running below normal, full production is not expected until early November. This development is likely to put additional pressure on global LNG prices, especially in Asia and Europe. As winter approaches, energy traders will be keeping a close watch on supply conditions. Any further disruptions or demand spikes could push prices higher, making energy cost management critical in the months ahead. The market is bracing for a potentially volatile winter season.

8

Daily Energy Market Update - September 2nd, 2024 Today’s UK energy market saw significant movements, particularly in both gas and power prices. The NBP Gas Day-Ahead price experienced a notable increase of 2.65%, reaching 94.79 p/th. This upward trend extended to key contracts such as October 2024, which rose by 2.07% to 96.15 p/th. These price movements reflect the current market dynamics and underlying factors influencing supply and demand. In the power market, UK Base Day-Ahead power prices surged dramatically, with a sharp increase of 42.56%, bringing the price to £91.97/MWh. Even more striking was the rise in peak power prices, which climbed by 56.12% to £93.50/MWh. These significant jumps in power prices can be attributed to several critical factors impacting the market this week. One of the primary drivers is the forecasted shortfall in wind power generation. This week, wind output is expected to fall over 20% below seasonal norms. As wind plays a crucial role in the UK's energy mix, this reduction in generation capacity is putting upward pressure on prompt energy prices, as the market anticipates a tighter supply-demand balance. Adding to the bullish sentiment in the gas market is the ongoing industrial maintenance in Norway, which is set to have a considerable impact on gas flows. With a reduction of 40 million cubic meters per day in Norwegian gas flows, the market is reacting with higher prices as supply tightens. Despite these factors, temperatures in Britain for the week are expected to align with seasonal norms. While this will likely have a limited impact on gas demand, the market is more focused on the supply-side constraints and the reduced wind generation that are driving prices higher. Looking at the broader energy complex, we see TTF Gas Day-Ahead prices inching up by 0.89% to €39.15/MWh, while the Front Month price rose by 2.43% to €39.82/MWh. On the global front, Brent Crude prices declined by 2.46%, now trading at $76.93 per barrel. Meanwhile, in the carbon markets, both UK and EU carbon prices saw minor declines, with UK carbon closing at £43.31 per tonne, down 2.61%. In summary, today’s energy market activity is shaped by a combination of reduced wind generation, significant Norwegian gas maintenance, and stable temperature forecasts. These factors are collectively driving the sharp increases we’ve seen in UK power and gas prices. As we move further into the week, it will be crucial to monitor how these elements continue to influence the market. Stay tuned for more updates, and as always, feel free to reach out with any questions or for deeper insights into these trends.

10

Partner's News The Energy Hubs – Fill the Backbone report by Hydrogen Scotland member Net Zero Technology Centre highlights the emerging opportunity to export green hydrogen from Scotland into the expanding hydrogen market in Europe. Economic modelling indicates that a 10 GW scale Energy Hub in Scotland producing green hydrogen from floating offshore wind could produce hydrogen for £3.90/kg. To capitalise on this opportunity, Scotland will need to develop strategic Energy Hubs in time to meet this growing demand. https://lnkd.in/gPJgp5SC

2

Commercial solar panels can significantly reduce your electricity bills and carbon footprint. 🌞 🌱 Find out why solar energy is transforming UK businesses and how you can join the revolution: https://lnkd.in/dYBBHS_F #SolarPower #SustainableBusiness #EnergySavings

11

Daily Energy Report November 8th: A cool start to the day finds UK energy markets bracing for lower-than-average temperatures across Europe, impacting both gas and power prices. The UK gas system began the morning undersupplied by 10 mcm/day, with colder weather set to intensify from mid-November. Natural gas for power demand is lower on the day-ahead, as wind generation rises, offsetting the need for gas-fired power production. LNG supplies are stable at 33 mcm/day, with three cargoes scheduled for arrival soon, helping to maintain a steady flow of imports into the UK and Northwest Europe. Norwegian exports remain consistent at 331 mcm/day, despite minor disruptions due to unplanned maintenance at key sites. The UK Day-Ahead gas price is at 103.65 p/therm, a slight rise compared to previous days as the seasonal temperature drop begins to reflect in pricing. Expectations for lower-than-normal temperatures, particularly from November 13th onward, are feeding into this price firming. Curve contracts also strengthened, driven partly by broader market influences, including movements in the oil markets and post-election volatility in the US. In parallel, Pan-European gas storage levels remain robust at 94.43%, a comforting buffer as winter demand looms. On the power side, UK Day-Ahead baseload is trading at £96.10/MWh, with high wind generation easing some pressure on gas demand for electricity production. Nuclear output remains steady at 4.7 GW, though two reactors remain offline, accounting for a total of 1.2 GW in curtailed capacity. Wind is expected to continue to play a critical role in balancing the grid over the coming days, while solar output, currently low, is anticipated to exceed normal levels starting Monday. Commodities also show price adjustments: Brent crude for December is up to $75.63 per barrel, while coal for 2025 delivery sits at $121.12/tonne, reflecting steady demand expectations. Carbon pricing for EUAs has climbed to €66.04/tonne, with the UK ETS at £38.00/tonne, underscoring the ongoing pressure on carbon markets amid seasonal adjustments and higher demand forecasts. On the currency front, the pound has seen minor movement, with the GBP/EUR exchange rate at 1.2021 and GBP/USD at 1.2986. This currency stability aids in smoothing import costs, particularly for gas, but shifts in either direction remain likely as winter demand and international market conditions evolve. Today’s market data highlights the intricate balance of supply and demand factors at play as the UK and Europe prepare for colder weather and a potential uptick in heating and power requirements. As conditions shift in the coming days, these factors will continue to define energy prices and trading behaviors across the UK and beyond.

7

UK Energy Market Update - September 3rd, 2024: As we move into the first week of September, the UK energy market is experiencing some notable shifts. Cooler-than-average temperatures are forecasted for next week, which could potentially create upward pressure on energy prices. This is compounded by a reduction in Nordic flows, adding further strain to the market. These weather-related factors are likely to influence market dynamics in the short term. On the renewable energy front, generation continues to underperform compared to seasonal expectations. Despite this, day-ahead (DA) power prices have remained relatively stable since yesterday. However, the continued shortfall in renewable output, particularly from wind and solar, introduces a level of unpredictability in power generation, which could have ripple effects on market prices as we progress through the month. In the gas market, flows from Norway are seeing significant reductions, with no gas flowing through the Langeled pipeline and further cutbacks along the Vesterled line. The situation is further complicated by the shutdown of the IUK interconnector today, which has reduced UK gas exports by 11 mcm/d. While this reduction in exports provides a slightly looser balance than might be expected given the heavy maintenance, it highlights the ongoing supply challenges the market faces. Overall, with European gas storage seeing its first withdrawal in months due to the reduction in Nordic flows, the energy market remains on edge. Although storage levels are expected to accumulate slowly over the next two weeks, the ongoing maintenance work will keep the balance delicate. Market participants should remain vigilant as these developments unfold.

3

4th September - End of Day Energy Market Report: Today's energy markets continued to exhibit a strong downward trend, with UK front-month gas prices extending their decline for the fourth consecutive day. By the close of trading, UK front-month power prices had fallen by 2.97%, ending the day at £73.50. This decline reflects broader market sentiment, which has been driven by a combination of mild weather forecasts and robust gas storage levels across Europe. The front-month NBP natural gas prices mirrored this downward trend, dropping by 3.39% to close at 86.34 pence. This significant decrease in gas prices can be attributed to lower demand expectations as the autumn season progresses. In the carbon markets, we saw further price adjustments. December 2024 EUAs fell by 1.64%, settling at €67.04. This drop continues the recent volatility in the carbon market, where prices have been fluctuating due to uncertainties around future regulatory changes and emissions targets. Similarly, UKAs saw a decline of 1.47%, finishing the day at £41.70. The ongoing adjustments in carbon pricing reflect market participants' recalibration of their positions in response to evolving policy frameworks and emission reduction goals. On a different note, Brent crude oil bucked the overall market trend with a modest gain of 0.15%, closing at $73.86. This slight uptick in oil prices comes amid ongoing concerns about global supply disruptions, particularly in light of recent geopolitical tensions and OPEC+ production strategies. However, the gain was relatively subdued, indicating that the broader energy market remains cautious. Today's movements across the energy markets underscore the complex interplay of factors influencing prices, from weather patterns and storage levels to regulatory developments and geopolitical events. As we move further into the autumn season, market participants will likely continue to monitor these dynamics closely, particularly as winter approaches and energy demand patterns begin to shift.

9

UK #Energy #Market Report - 9th September 2024: The UK energy market saw an uptick in both gas and power prices as cooler weather pushed demand higher. The NBP Day-Ahead price settled at 87.50 p/therm, reflecting a slight increase from the previous session. The UK system opened balanced this morning, with demand rising due to colder temperatures across the country. According to the latest EC46 forecast, temperatures are set to remain several degrees below seasonal norms throughout the week, before picking up slightly towards the weekend. Despite increased demand, wind generation has been performing well, alleviating some of the pressure on gas for power generation. Total gas export nominations from Norway have dipped slightly, from 192mcm/day to 185mcm/day, but the UK remains well supplied, with four LNG cargoes expected to arrive this week. One of these shipments docked at Isle of Grain today, underscoring the importance of LNG imports in balancing the UK’s gas needs. On the power side, UK Day-Ahead Baseload prices rose significantly, settling at £83.33/MWh, up £10 from the previous day. Peak prices also climbed to £85.03/MWh. The cooler weather has increased heating demand, while intermittent renewable generation continues to play a crucial role. Over the past two weeks, the UK's power mix has been dominated by gas-fired plants, supported by steady contributions from nuclear and renewables. Carbon prices saw a modest rise, with EU Allowances for December 2024 trading at €66.50/tonne. Meanwhile, UK ETS prices decreased slightly to £41.75/tonne. In the broader energy landscape, Brent crude prices fell to $71.06/bbl, reflecting ongoing volatility in global oil markets. As the week unfolds, cooler temperatures and fluctuating supply from Europe will continue to drive price movements. With increased LNG arrivals and strong renewable performance, the UK’s energy market is positioned to meet the rising demand while maintaining balanced system conditions. Keep an eye on weather developments and LNG shipments, as they will be key drivers for both gas and power markets in the coming days.

8

Daily #Energy #Market Update – September 4th, 2024 Today's energy market continues to reflect the intricate balance between supply, demand, and external factors such as weather and ongoing infrastructure maintenance. The UK is currently experiencing temperatures above the seasonal average, with forecasts suggesting this trend will persist throughout the week. These warmer conditions could drive increased demand for air cooling, potentially exerting upward pressure on prompt UK gas prices. However, this potential bullish impact may be countered by the fact that day-ahead wind generation is exceeding seasonal norms. Higher wind output typically reduces the need for gas in power generation, which could lead to a softening of prompt UK energy prices. The supply side of the market is also presenting mixed signals. Heavy maintenance activities at Norwegian gas plants have resulted in reduced gas flows to the UK. Despite this, the overall impact on prompt UK gas prices might be muted due to the lower residual demand, driven in part by the increased contribution of renewable energy sources. The UK National Transmission System (NTS) is currently forecasted to be in a long position by 6.32 million cubic meters, with demand forecasted at 126.62 million cubic meters, which is notably below the seasonal norm. In terms of pricing, the UK energy market saw a decline across several key contracts. The day-ahead NBP gas price dropped by 9.60% to 88.60 pence per therm, while UK base power prices for the same period fell by 1.22% to £93.17 per megawatt-hour. Forward contracts also reflected a downward trend, with October 2024 gas prices declining by 3.99% to 89.37 pence per therm, and December 2024 gas prices dropping by 3.20% to 102.76 pence per therm. These price movements indicate a market that is responding to both current conditions and anticipated future trends. In the broader energy complex, Brent crude oil prices saw a significant decrease of 5.11%, settling at $73.75 per barrel. This decline comes amidst broader market volatility and shifts in global supply dynamics. European carbon prices also dipped, with the front December contract falling by 3.33% to €68.16 per tonne, while UK carbon prices edged slightly higher by 0.84% to £42.32 per tonne. In summary, today’s energy market reflects the ongoing interplay of weather conditions, supply constraints, and renewable energy contributions. As we move forward, these factors will continue to influence market dynamics, requiring close attention from all stakeholders.

13

UK #Energy #Market Overview – 27th November 2024 - This morning, UK energy markets opened to cooler temperatures and a mix of energy developments that continue to shape short-term price movements. Here’s a look at today’s trends and influences. Day-ahead NBP gas settled at 117.75 p/therm, slightly down from yesterday's levels. The decline aligns with a broader European market trend, influenced by warming forecasts earlier in the week and consistent Norwegian pipeline flows, which held at 330.5 mcm/day. UK LNG sendouts remain robust, reaching 87 mcm/day, boosted by eight LNG cargoes expected in the coming weeks. Storage facilities are currently 87% full, a comfortable position, although notably lower than last year’s levels at this time. Increased gas demand for power generation is anticipated as temperatures dip below seasonal norms and nuclear generation remains subdued due to ongoing maintenance. Notably, Norwegian flows saw a marginal decrease due to planned maintenance, while Russian flows remain steady. UK day-ahead power prices settled at £106.25/MWh, reflecting softening seen in gas prices. The market faces reduced nuclear generation, with several outages, including Hartlepool-1 and Heysham units, limiting supply. Wind generation is also expected to drop in the short term before picking up over the weekend, further pressuring reliance on gas-fired power generation. Brent crude oil prices have decreased by 2%, now at $72.81/bbl, as geopolitical tensions ease following a ceasefire deal between Israel and Lebanon. Carbon allowances trade at €69.23/tonne for EUA Dec-24, with UK ETS certificates at £37.12/tonne. Meanwhile, coal prices softened to $124.14/tonne. Temperatures are projected to hover below seasonal averages through early December, with wind generation recovering into the weekend. These conditions, coupled with LNG influxes and steady European storage levels, will likely influence short-term pricing dynamics. The market's focus remains on balancing supply-side stability against demand pressures as we approach the peak winter period. Stay tuned for updates as conditions evolve.

10

Daily UK Energy Market Update - August 21st, 2024 As we move through the week, the UK energy market is undergoing several important changes influenced by weather patterns and shifts in supply dynamics. These factors are driving fluctuations in both gas and power pricing. The weather forecast indicates milder conditions for the coming week, which is expected to lead to a reduction in overall energy demand. This decrease in demand is likely to place further downward pressure on prompt power and gas prices. Additionally, wind generation is anticipated to be robust, with forecasts suggesting a peak of approximately 15.5 GW/day. This high level of wind output is expected to reduce residual demand further, contributing to lower power prices. On the pricing front, NBP Day-Ahead gas prices saw a significant drop of 4.81%, closing at 84.34 pence per therm. The September 2024 gas contract also fell by 5.11%, reflecting a softening of supply concerns as Norwegian flows shift. UK Base power prices for Day-Ahead delivery experienced a dramatic decrease of 53.74%, ending at £35.26 per megawatt-hour. The September 2024 power contract similarly declined by 4.04%, closing at £79.30 per megawatt-hour. In terms of supply and demand, there has been a noticeable shift in Norwegian gas flows, with an increase in deliveries to Dornum. This change has impacted the NBP time spread for September and October 2024, causing some market volatility. The UK power market also experienced a sell-off yesterday afternoon following a revision in the Norwegian maintenance schedule, which further influenced pricing trends. Wider market movements showed TTF Day-Ahead gas prices declining by 5.65%, while Brent Crude front-month prices saw a modest decrease of 0.60%, closing at $77.20 per barrel. Carbon markets remained relatively stable, with minor adjustments in both UK and EU carbon pricing. Looking ahead, with high wind generation expected to persist and milder weather reducing demand, we may continue to see suppressed pricing across both the gas and power markets in the near term. It will be important to keep a close watch on Norwegian supply developments and ongoing weather patterns, as these will likely continue to shape market dynamics.

7

UK Carbon Regulator is essential for the functioning of a net zero economy - Energy Systems Catapult (ESC) released its Operationalising a Carbon Regulator report, which aims to guide the development of a robust regulatory framework for carbon accounting in the UK. ESC states that a Carbon Regulator would be “crucial” to the standardisation of carbon accounting practices, emphasising that the implementation of a Carbon Regulator is essential for the functioning of a net zero economy by: reducing investment risks; building investor, business, and consumer confidence; and levelling the playing field for innovators. The report outlines that a UK Carbon Regulator could utilise its potential position as a first mover to promote the credibility of UK low carbon industry, while demonstrating the value of nationally coordinated carbon accounting regulations. In delivering this, ESC notes that a Carbon Regulator would require a mandate to enable continuous international engagement. https://lnkd.in/eEXm4sV9

5

Looking to boost your retail business’s revenue?   We can support all businesses in embracing green energy solutions starting with public EV chargers right beside your business!   With so much information available, it can be challenging to know where to start. But don't worry, ScottishPower is here to help you take the first step towards a greener future for your business.   #SustainableBusiness #EnergyEfficiency #GreenerBusiness

20

Daily #Buisness #Energy Report 13th December 2024: A market overview marked by milder forecasts and shifting dynamics. Today’s energy markets reflect a dynamic interplay of factors, with notable movements across gas and power prices. The UK's NBP day-ahead gas prices settled at 105.75 p/therm, down slightly due to warmer weather forecasts curbing demand, while power prices followed suit, with the UK day-ahead baseload closing at £150.98/MWh, a significant drop from yesterday. The UK's system opened with a 4 mcm/day shortfall this morning, impacted by reduced Norwegian flows, an outage at the Rough storage facility (cutting 2.5 mcm/day until noon), and moderated MRS withdrawals. LNG sendout continues robustly at around 100 mcm/day, with 11 LNG cargoes expected by early January. Internationally, muted Asian demand persists as high prices deter Chinese buyers despite cold snaps, particularly in South Korea. In Europe, Northwest regions anticipate warmer-than-average temperatures through January, aligning with predictions for the UK where conditions remain near seasonal norms. UK power prices mirrored gas trends, with baseload and peak contracts softening. Increased nuclear capacity from France, exceeding 52 GW after years of underperformance, has also helped stabilise continental markets. Additionally, renewable generation continues to complement the UK's supply mix, aided by strong interconnector performance. Oil prices remain stable, with Brent settling at $73.41/bbl, while coal fell slightly to $112.66/tonne. Carbon pricing saw a dip, with EUA Dec-24 at €66.10/tonne. In currency markets, the GBP strengthened slightly against the Euro, trading at 1.2132 GBP/EUR. As we approach the weekend, warmer weather forecasts and robust LNG supplies are likely to maintain pressure on short-term gas and power prices. The energy landscape is poised for further volatility amid global supply adjustments and regional demand patterns. Stay tuned for how these developments evolve.

6

🎥 See the latest Direction Discussion from L&C Utility 🎥 Our latest #EnergyMarket video update, shedding light on the dynamic landscape of UK energy prices. 🔍 In the Direction Discussion, we delve into the latest trends, drivers, and challenges impacting the market. 📺 Stay tuned for more thought-provoking content from L&C Utility! #UKEnergy #DirectionDiscussion #Gas #Electricity

4

🎥 See the latest Direction Discussion from L&C Utility 🎥 Our latest #EnergyMarket video update, shedding light on the dynamic landscape of UK energy prices. 🔍 In the Direction Discussion, we delve into the latest trends, drivers, and challenges impacting the market. 📺 Stay tuned for more thought-provoking content from L&C Utility! For the full update please visit https://lnkd.in/ezhxaw-G #UKEnergy #DirectionDiscussion #Gas #Electricity

4