25th February 2025 Energy Price Alert – UK Gas & UK Electricity
Wholesale Gas and Electricity prices were broadly stable on Monday, although March ’25 prices rose sharply.
There will doubtless be further small corrections from time to time, as the market returns to its downward trend.
Gas: Prices picked up as we moved throughout yesterday’s session, largely on the back of downwards revisions to wind forecasts. Despite yesterday’s gains, the market is still down by ~20% on where it was on 10 February.
Power: Power prices also gained yesterday for the same reason as gas, a drop in forecasted wind output. Temperatures have also been revised down for the rest of the week, with the drop in wind, this will likely increase gas for power demand.
Oil: Prices jumped up slightly yesterday on the back of new sanctions on Iran by the US. Despite there being no set date, it is planned that the Kurdistan region in Iraq will once again commence oil exports, expected to be in the region of 185,000 barrels/day. This news pressured price.
Carbon (EU ETS): The ICE Dec-25 declined very slightly yesterday, settling at €73.66/t. The contract is trading lower at €72.86/t this morning.
Carbon (UKAs): The ICE Dec-25 made small gains yesterday, up to £41.21/t. The contract has lost ground this morning, currently trading at £40.90/t.
