As one would expect, wholesale gas and electricity prices spiked on Friday, and we expect to see further increases in the coming days given the escalation of conflict in the Middle East. At a retail level, we are seeing increases of greater than 5% and and suppliers are pulling contracts if they are not signed on the day they are issued. This kind of volatility is typical in times like these, and prices often settle back to previous levels within 2–3 weeks once the situation stabilises.
| Gas: Gas prices rose at the conclusion of last week, driven by the escalation between Israel and Iran. Fundamentals showed a slight increase in day-on-day demand due to cooler weather; however, this level was still below seasonal norms. Power: Power prices tracked the wider energy complex and rose at the end of last week. A below average wind output of 5.8GWs forecast for this week supported prices further in the prompt. Oil: Oil prices rallied on Friday after Iran vowed to retaliate to Israel’s air strikes. Prices have continued to be volatile this morning. Carbon (EU ETS): The ICE Dec-25 rose to €75.94/t at the close of last Friday. The contract opened at €75.78/t this morning and is currently trading at €75.74/t. Carbon (UKAs): The ICE Dec-25 continued its bullish run last Friday, eventually settling at £54.56/t. The contract opened this morning trading at £54.87/t and is currently trading at £54.41/t. |
#gas #electricity #businessutilities #businessgas #businesselectricity
