GLEG UK & European Energy Snapshot...
Daily (01.08.2024): Oil prices rose by over 2% on Wednesday as Libyan production woes offset Chinese demand weakness.
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Oil prices experienced a significant rise on Wednesday, spurred by production challenges in Libya despite diminished demand from China. Consequently, Brent and WTI crude advanced by over 2%, closing at $78.33 and at $75.23 a barrel.
British near-term gas prices increased amid supply concerns, pushing the NBP spot price up by over 2% to close at 82.00 p/therm. On the forward curve, the gas price for Win-2024 surged by nearly 4%, closing at 107.21 p/therm influenced by threats to pipelines between Russia and Ukraine as clashes erupted near key transit points.
Wednesday saw a mixed evolution in European spot electricity prices. The German spot power priceedged up by nearly 0.3%, closing at 93.15 EUR/MWh, driven by expectations of lower solar power output. In contrast, the French day-ahead contract plummeted by 10%, settling at 31.01 EUR/MWh due to lower demand.
Along the forward curve, front-year electricity prices continued their upward trend for the third consecutive session, buoyed by bullish gas prices. The German Cal'25 power price increased by 1.7%, closing at 96.11 EUR/MWh. The similar French contract rose by 1%, settling at 81.07 EUR/MWh.
On Wednesday, European carbon prices rose in tandem with stronger gas prices. Consequently, EUAs expiring in Dec-2024 closed at 70.57 EUR/tonne, up almost 1%.
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