Energy Snapshot – Key Points:
- A downward price trend, likely influenced by the US election result.
- Some signals that a peace deal in the Middle East may be close.
- Energy exports from the Middle East are still being impacted.
What direction are wholesale prices moving in?
On Monday the 9th of November, Gas and Electricity Year Ahead Wholesale costs were lower than last week. There are small decreases this morning. Prices into 2027 and 2028 still show much better value. Oil is lower at $90 from $107.
What is impacting energy prices?
As we approached the US midterm elections on the 3rd of November, prices began to move lower. This was likely due to the belief that President Trump’s Republican Party would suffer heavy losses, largely the result of the war in Iran and the impact in the US. The scale of the result has meant that energy markets are optimistic that a peaceful outcome could be close, with continued discussions. Despite the more positive recent downward trend, prices remain inflated, based on the continued restrictions of Oil and Gas exports from the Middle East and the global competition for supplies.
Could Europe have enough Gas in storage this winter?
With lower temperatures across Europe, EU Gas Storage is now being used and is just 72% full compared to 83% last year. This is adding pressure to prices.
The last week saw Gas provide a high 52% of generation due to low contributions of Wind at just 13% and 6% via the Interconnectors.
Get in touch
We would encourage customers with contracts that end in the next few months to discuss your renewals with us, and we will look to provide further advice and support as required.
