24th February 2025 Energy Price Alert – UK Gas & UK Electricity
On Friday wholesale Gas and Electricity prices continued the drops seen throughout the whole of last week.
We expect some volatility during the hopeful resolution of the Ukraine conflict. Once that is behind us, short of any other geo-political events, we would expect to see prices continuing a downward trend into the Summer.
Unlike the period to the end of 2024, there is now a clear curve with differentiated pricing for 1, 2 and 3 years.
Gas: Gas prices fell last Friday. Prompt prices fell as warmer temperatures were forecasted alongside higher wind generation. The UK is expected to receive six LNG cargoes over the weekend. Curve prices were pressured by storage injection requirements.
Power: Power prices softened in the prompt and rose in the curve on Friday. Wind-power production in week 9 is expected to average 12GWs/day, 10% above norms. Curve prices rose with influence from the gas market.
Oil: Oil prices softened on Friday, positioning itself for a weekly loss due to the potential peace deal between Ukraine and Russia. The peace deal would allow Russian oil back into the market, alleviating any tight supply concerns.
Carbon (EU ETS): The ICE Dec-25 rose on Friday, settling at €73.9/. The contract is trading lower at €73.38/t this morning.
Carbon (UKAs): The ICE Dec-25 rebounded slightly last Friday, up to £40.66/t. The contract is trading slightly higher this morning at £40.95/t.
