Energy Market Update 01/10/2024

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:

⚡ Rising power demand from data centres due to the AI boom could see power overall power demand in Western nations begin to rise again and raise issues for decarbonising

⚠️ There are mounting concerns of a widening conflict in the Middle East as Israel steps up attacks in Lebanon and Yemen. Israel have begun targeting energy infrastructure including a power station in Yemen. This is increasing pressure for gas prices as the region is a large producer of oil and gas.

❄️ Northwest Europe and the UK could see 3bcm less LNG supply over Winter-24 as stable demand in Asia is increasing competition. This could be exacerbated by the La Niña weather pattern, as it raises the risk of colder conditions further fuelling LNG demand in both regions.

🌪️ Gulf of Mexico’s oil and gas extraction plants start to come back online following the effects of Hurricane Helene

💨 Wind capacity is expected to increase in Northwest Europe and the UK over Winter-24, reducing reliance on gas-fired generation.

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