Prices continued to drop on Thursday
At retail not all the increases or decreases have been directly mirrored and contracts are presently more expensive than they were pre the Middle East conflict by between 1p/kwh and 1.5p/kwh for electricity. There continue to be stricter credit conditions from all suppliers as their exposure in £ increases given the increased prices.
On the generation side in the past week fossil fuels were at 37.1% last week, partly because renewables were down at 32.8%. This has kept pressure on both the gas & electricity prices.
| Gas: Gas prices fell across most of its curve yesterday. Prompt prices fell as Wind generation outperformed forecasts, leading to reduced demand on fuel-fired generation. Additionally, the British Gas grid was 3.8mcm oversupplied yesterday. Power: Power prices continued to track the movements of the underlying Gas market yesterday. Prompt prices fell as Wind generation rose 20% above seasonal averages and even outperformed forecasts. Crude: Oil prices fell by almost $2/barrel yesterday due to US demand concerns. The US GDP unexpectedly rose by 4.9% year on year in Q3, leading to investors believing that the Federal Reserve will keep the higher interest rates in place for longer. This caused the value of the $USD to rise against other currencies, making oil more expensive therefore limiting demand. Carbon (EU ETS): The ICE Dec-23 fell to €79.65/t yesterday. The contract is currently trading at €80.06/t at the time of writing. Carbon (UKAs): The ICE Dec-23 fell to £38.06/t yesterday. The contract is currently trading at £38.4/t at the time of writing. |
