Energy Market Update 22/10/2024

Welcome to our weekly energy market update, where we share the latest trends, shifts, and key developments impacting the energy sector. Whether it’s fluctuations in oil and gas prices, changes in renewable energy policies, or updates on energy infrastructure projects, we’re here to help you stay informed. Join us as we break down the most important factors influencing the market this week, and explore what these changes could mean for your business.

Current Market Drivers:

❄️ European underground gas storages are 95.2% full as of 19/10/2024 ahead of the 90% target for the start of November. This reduces fears of gas shortages this Winter.

🌍 Israeli officials stated that they were no longer looking to strike Iranian energy infrastructure and were going to target military infrastructure instead. This reduced fears of a disruption to the global oil and gas supplies.

💡The long-term picture for UK renewables remains positive, with private investors pledging £24 billion to new renewable capacity and grid upgrades. The UK has been ranked as the most attractive market for renewables investors since Labour won the election.

📈 Market tightness is expected as we go into 2025. The ending of the Ukrainian gas transit agreement, paired with IEA forecasts for further global gas demand growth into 2025 are supportive to the market.

🔋 UK and European energy grids need significant upgrades to be able to support the large amounts of new renewable and battery capacity coming online, potentially raising some concerns about Labour’s 2030 net-zero targets.

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