Energy Market Overview
Energy supply has been relatively healthy with the UK and EU storage at 63% full, which has helped prices to remain steady. This has kept concerns low and allowed for the outlook of prices to also stay consistent and for Summer 2023 to even start to decrease in price. For the first time in 2 months we have seen Winter 2023 also dropping to for the first time since the 29th of March. This is likely to continue as long as supply is not majorly disrupte.
Wind generation has also contributed to over a quarter of the UK power mix too. Wind is now becoming the main source of electricity in the UK. Temperatures are expected to be below seasonal norms until the 22nd May, so this is unlikely to impact prices until after this date when they are forecasted to increase.
Bearish Factors (downward pressure on markets):
- Rising wind generation
- Low gas demand
- Healthy supply
Bullish Factors (upward pressure on markets):
- Lower-than-average temperatures until 22nd of May
- Decrease in Liquefied Natural Gas supply
- Concerns about US and China Consumption
- There has been a number of outages in Norway