Wholesale gas and electricity prices dropped on Friday, which was a welcome end to the week. The spread between one- and three-year contracts is getting tighter, but overall, prices are moving in the right direction.
| Gas: Gas prices fell at the end of last week. Demand went down to 123mcm/day from an expected 137mcm/day. Wind generation is expected to generate above average this week, limiting demand for gas in the prompt. Curve prices tracked the prompt due to a lack of clear market drivers. Power: Power prices fell at the end of last week. Wind was expected to generate 10.9GWs/day over the weekend and average 21.1GWs/day over this week, limiting demand for more expensive fuel fired generation. Curve prices fell in line with the wider energy complex. Oil: Oil prices fell by 2% at the end of last week. Weak US jobs data dimmed the outlook for oil demand, and crude inventories rose by 2.4m barrels in the US. Carbon (EU ETS): The ICE Dec-25 rose to €76.04/t last Friday. Opening at €75.06/t this morning, the contract is currently trading stronger at €75.47/t at time of writing. Carbon (UKAs): The ICE Dec-25 rose to £56.12/t on Friday. The contract opened at £56.21/t this morning and is currently trading at £56.31/t. |
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