July 2021 Energy Market BriefAs energy prices continue to increase we take a look at the key drivers that have helped push prices higher.

In June 2021, all tracked wholesale GB gas contracts rose, with the most pronounced rises observed across near-term contracts, continuing recent trends. Gas prices across the board remained comfortably above their levels seen at the same time last year, underpinned by strong performing commodity markets and notably low European gas storage levels throughout the entirety of June.

On average, seasonal gas contracts from winter 21 to winter 23 were 3.8% higher in June than in May, with prices collectively ending the month higher than they were at the month’s start. Winter 21 rose 12.5% to average 77.94p/th, while winter 22 gas lifted 2.1% to 57.80p/th.

Wholesale power contracts largely shared the bullish trends observed from gas markets, with some exceptions in longer dated seasonal contracts.

Seasonal power contracts up to and including winter 23 inched higher, rising 0.5% on average in June. Winter 21 rose 6.3% to £85.63/MWh, while summer 22 rose 0.2% to £59.51/MWh. The annual October 21 power contract rose 3.4% to average £72.33/MWh.