Energy Market Update - 27 March 2024

The market experienced a downward session yesterday, unwinding Monday's gains and maintaining a stable trading pattern as the winter delivery period concludes.

The market experienced a downward session yesterday, unwinding Monday's gains and maintaining a stable trading pattern as the winter delivery period concludes.

As we approach the end of the winter delivery period, Europe boasts an impressive gas storage level of almost 60%, the highest in recent times, slightly surpassing the 2020 figures. This robust storage level indicates a solid footing as we transition into the next winter contract. However, data from the Ukraine system operator remains unavailable, leaving gaps in the latest values.

Monday saw notable movements with the TTF Front Month contract closing at €27.13, down from €28.49, and the NBP Front Month contract settling at 69.14p, a decrease from 73.41p. No unplanned outages were reported, maintaining steady gas flows. LNG shipments expected in the UK within the next weeks stand at 2, reflecting a balanced supply outlook despite the absence of Nord Stream flows.

Market activities today highlight a steady stance with the Front Month TTF contract at €27, showing no change. Other key contracts indicate a slight adjustment in prices, with the UK Power DA dropping to £62 from £72, and Brent Oil marginally decreasing to $86. These movements, alongside stable EU gas storage levels and anticipated LNG arrivals, portray a market navigating cautiously amidst changing seasonal demands and external factors such as the recent Baltimore bridge collapse affecting commodity flows.