Prices continued to drop on Wednesday, due to a combination of good stocks and mild weather.
We expect the reductions to continue, albeit probably at the lower rates than they are now. Interestingly, Winter 24 and Winter 25 electricity dropped at the higher rate, than the corresponding summer period.
| Gas: Another bearish day for gas prices, as prices softened further throughout the curve with low demand and mild temperatures being the main drivers on the prompt. The day ahead contract closed at 59.425p/therm on Wednesday, the lowest close price since June 2023. Storage withdrawals were expected to see a decline from 31mcm/day to 9.7mcm/day. Power: There were losses throughout most of the power curve yesterday, largely tracking NBP movements. Hartlepool’s 620MW nuclear reactor 1 is set to return to service next week, full capacity expected at the end of the month. Net power imports through the 1st to 13th February have averaged 3.8GW. Oil: Wednesday proved yet another volatile day for oil prices as a lift in crude inventory clashed with a weaker dollar. British inflation remaining at 4% is likely to mean the Bank of England will be reluctant to reduce interest rates until much later in the year, muddying the outlook for demand. Carbon (EU ETS): The ICE Dec-24 contract closed, almost level with the previous session, at €56.63/t yesterday. The contract is currently trading down at €56.49/t. Carbon (UKAs): The ICE Dec-24 rose to £35.71/t yesterday. Opening lower this morning, the contract is currently trading at £35.83/t. |
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