Energy Market Update - 11 April 2024

The energy market experienced a slight downward movement in yesterday's session, with near-term contracts slightly declining but movements across the board remaining muted.

Yesterday's session revealed a continuation of recent patterns, maintaining stability at current levels. The TTF Front Month contract closed at €27.10, down from €27.35, and the NBP Front Month contract settled at 67.37p, decreasing from 68.00p. With no unplanned outages reported and gas flows stable, the energy market's supply outlook appears secure. EU gas storage is 60.87% full, and four LNG vessels are expected to arrive in the UK in the coming weeks, contributing to a balanced supply scenario.

This morning, the Front Month TTF contract rose to €28, indicating a slight recovery from the previous settlement. A glance at key contracts shows a stable market with minor fluctuations. UK power prices remain steady with the Front Month Baseload and Front Season contracts unchanged at £58 and £77 respectively. In contrast, Brent Oil has edged up to $90, highlighting external market pressures. The European carbon market and Henry Hub gas prices have seen slight adjustments, reflecting broader energy market dynamics.

The UK system has started the day balanced, with forecasts predicting above seasonal norm temperatures and increased wind speeds, likely reducing gas for power demand. The calm in the market is maintained by stable flows from the Norwegian shelf and the anticipation of additional LNG cargo arrivals. Amidst this backdrop, oil prices have risen due to escalating tensions in the Middle East, adding a layer of complexity to the market's outlook.