Wholesale gas and electricity prices have fallen on Tuesday in the immediate term,as immediate supply concerns have eased and the market has removed some short-term risk premium.
April and October contracts have dropped in line with the wider market, reflecting lower expected winter pressure and a generally softer price outlook.
| Gas: Gas prices fell yesterday, as the British Gas hub sell-off continued, as the risk premiums shed from near dated contracts due to fundamentals. Demand in the prompt fell as wind generation and temperature forecasts increased, whilst bountiful LNG cargoes are expected to dock in the UK, boosting supplies. Power: Power prices fell yesterday, tracking the losses in the gas and carbon markets. High wind output in the prompt of 13.4GWs/day over week 8 limited demand for fuel-fired generation. Oil: Prices steadied yesterday and traded flat, as the market awaited a direction from diplomatic news between the US and Iran and any progress towards peace between Ukraine and Russia. Carbon (EUAs): The ICE Dec-26 fell to €78.86/t yesterday. The contract has continued to soften, opening lower this morning at €78.80/t. Carbon (UKAs): The ICE Dec-26 reversed yesterday’s gains and plummeted to £51.85/t. It opened lower this morning at £51.00/t flat. |
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