Wholesale gas and electricity prices rose sharply on Monday in response to the increased conflict in the Gulf, with gas increases outstripping power increases.
We expect this volatility to continue in the coming days until common sense prevails.
| Gas: Prices jumped up yesterday upon further escalation in the conflict between the US and Iran, with the sharpest rises in the near curve. This morning, early trading is up on last night’s settlement. Power: Power prices gained yesterday, motivated by strong gas movements. Further out on the curve, gains in carbon UKAs brought further price support. This morning, implied pricing is up on last night’s close. Oil: Oil prices surged yesterday after further escalation in the conflict between the US and Iran. The latest naval blockade, by the US, of the Strait of Hormuz, had prices rise around 10%. Carbon (EUAs): The ICE Dec-26 traded to €80.11/t yesterday. The contract opened this morning at €80.31/t. Carbon (UKAs): The ICE Dec-26 closed at £57.08/t last night, opening this morning at £57.49/t. |
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