More geo-political issues on Thursday led to prices going higher. The ongoing Middle East situation was compounded by NATO stating publicly that they’ll take action if it’s proven that the attack on the Finland/Estonia pipeline earlier in the week was deliberate
If time is on your side with renewals our suggestion is to sit this period out as usually the market reaction abates after a few days/week as we’d started to see on Tuesday & Wednesday after last weekends events.
In terms of the lower table, which I send weekly, the generation cost has risen due to wind producing only 34.8% this past week vs 44% in the week before. That said renewables as a whole were the dominant supply type at 42% vs fossil fuels in 2nd place at 33%.
|Gas: Gas prices rose yesterday amongst rising geopolitical tensions as NATO secretary general vowed a response as the Balticonnector leaks were proven to be deliberate, with further tensons rising in the Middle East. |
Power: Power prices continued to track the underlying Gas market yesterday. The bullish sentiment was further supported by an unplanned capacity reduction of 500MWs at the Moyle interconnector between the UK and Northern Ireland.
Crude: Oil prices strengthened yesterday on the hopes that the US Federal Reserve will not increase interest rates further for 2023. However, price gains were limited as US inventories showed an increase in crude stocks.
Carbon (EU ETS): The ICE Dec-23 rose to €85.23/t yesterday. The contract is currently trading at €84.3/t at the time of writing.
Carbon (UKAs): The ICE Dec-23 rose to £49.64/t yesterday. The contract opened at £50.05/t this morning and is trading at £49.83/t at the time of writing.