Wholesale Gas and Electricity prices dropped again in the immediate term on Tuesday. April and October start date contracts have also seen slight decreases. 

Since the 13th January prices had been creeping up, and have now dropped back. To put this into context: on 13th January wholesale prices for April contract starts were £74/MWh for Electricity and 68p/thm for Gas, compared to yesterday’s prices of £75/MWh and 73p/thm respectively.

Gas: Gas prices fell yesterday as bearish sentiment echoed throughout all contracts, due to the easing of tensions between the US and Iran despite recent developments. Traders are now looking towards fundamentals for market movements, as March is currently forecast to be warmer and windier than average.   Power: Power prices continued to track the gas market yesterday, with the March contract falling 2.5%. Prompt prices fell, as the likelihood of an SSW (sudden stratospheric warming) event fell to 40% from 60% on 2 February, which initially was 80% on 30 January, according to the MetDesk.   Oil: Oil prices rose 2% yesterday after tensions rose in the Middle East, as the US reported shooting down an Iranian drone and armed boats approaching a US flagged vessel in the Strait of Hormuz.   Carbon (EUAs): The ICE Dec-26 fell to €83.11/t yesterday. The contract has opened at €81.03/t this morning.   Carbon (UKAs): The ICE Dec-26 traded to £62.83/t yesterday. It opened lower this morning at £61.05/t.

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