The wholesale gas and electricity markets were broadly stable on Friday, although there is some potential for upward movement due to American LNG production being scaled back now that prices are dropping.
LNG was able to step in and fill the gap created by the ban on Russian gas but the cost of extraction for LNG, particularly in the USA which is our main supplier, is far higher. It remains to be seen what effect the scaling back will have given the increasing supplies from Qatar, good local stocks in Europe, and mild weather.
| Gas: Gas prices settled mixed last Friday. Rising demand in the near curve combined with colder weather forecasts and lower wind generation outputs saw prices rise in the prompt. Gas storage facilities are currently 53% full, the same level as this time last year. Power: Power prices were mixed at the end of last week. Near curve prices rose following gains in the Gas market. Oil: Oil prices fell at the conclusion of last week as demand concerns outweighed supply issues. US Federal Reserve stated that interest rates will not be cut for several months in order to assess how successful they have been, dampening demand. Carbon (EU ETS): The ICE Dec-24 contract continued to decline down to €52.22/t last week. The contract is currently trading at €51.71/t. Carbon (UKAs): The ICE Dec-24 rose to £35.11/t last Friday. The contract has opened soft this morning and is currently trading at £34.75/t. |
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