Wholesale gas and power prices rose yesterday as the conflict between the US and Iran entered its 13th day, with mixed signals from the US around a potential end to the war continuing to drive market volatility. However, weaker underlying fundamentals are still limiting gas demand.
The volatility has not thus far been miorrored in the retail markets with 2- and 3-year pricing being broadly where it was before.
| Gas: Prices gained yesterday. The war between the US and Iran enters its 13th day and conflicting statements from the US around a potential end to the war is helping drive volatility. Bearish fundamentals continue to limit demand. Power: Power movements followed their NBP counterpart yesterday. Further out on the curve, rising carbon prices influenced gains. Early trading this morning has been relatively slow, large bid/offer spreads have implied prices above last night’s close. Oil: Oil prices once again hit $100/bbl as the war between the US and Iran continues. At least 6 ships have been attacked in the Strait of Hormuz over the last day. Carbon (EUAs): The ICE Dec-26 closed at €71.861/t last night. The contract opened this morning at €71.80/t. Carbon (UKAs): The ICE Dec-26 rose to £40.07/yesterday. Opening this morning at £39.56/t. |
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