Written by Lee Hart, Head of Knowhow Energy Overview What does this mean for me? Headlines: ✓ Gas and Electricity Wholesale prices have fallen further. ✓ EU Gas Storage levels are a reduced 70% full. ✓ More LNG shipments should be available from February with Freeport due to reopen. ✓ EU Gas Storage levels are 96% full. As of the 6th of February, Gas and Electricity Year Ahead Wholesale costs were lower, when compared to last month’s report and back to levels seen in 2021. Oil struggles to find price direction and has fallen from $82 to $81 per barrel, hitting a high of $88. It is thought the members of OPEC+ are unlikely to change the current productions levels, in an attempt to inflate the price. Although EU Gas Storage levels have reduced from 84% to 70% over the last month, it remains a positive position compared to the concerns through 2022, when it was feared restrictions on use may need to be enforced. Thoughts are already turning to the requirements for winter 2023/24. LNG deliveries continue to be made and can now be shipped direct to the new German facilities. Additional supplies are also expected soon as the US Freeport LNG terminal is due back online shortly, following the fire last year. Gas is an expensive form of Electricity generation and sets the Wholesale price, despite the high contribution of much cheaper Wind. A market review is looking at how Renewables could be priced separately, but in the meantime has seen the government increase Green generator’s tax, to help fund some of the support measures in place. The Met Office forecast is for seasonal norm temperatures and regional windy conditions at times in February. Read the full report below
