Energy Market Update - 04 April 2024

The energy market experienced a slight downtrend in the latest session, finding stability within its current comfort zone, a trend that's expected to persist with minor fluctuations.

In recent developments, the TTF and NBP Front Month contracts observed minor adjustments, closing at €25.56 and 63.14p respectively, reflecting a stable yet cautious market sentiment. With no unplanned outages and consistent flow levels, the fundamentals outlook remains steady, supported by EU gas storage levels at 59.39% and scheduled LNG arrivals in the UK.

This morning, the TTF Front Month contract stands unchanged at €26, indicating a market adjustment to prevailing conditions. The NBP Front Month contract, however, showed resilience, slightly rebounding to around 64.30p. This stability is underpinned by strong market fundamentals, despite ongoing geopolitical tensions.

UK power prices, alongside Brent Oil and EUA rates, maintain a steady course, suggesting a cautious optimism in the market. With EU storages preparing for winter and a forecast of milder temperatures, the market seems poised for a balanced outlook in the weeks ahead, moderated by the expected impact of weather on demand and supply dynamics.