On Thursday last week, prices thankfully dropped back a little, although they did not give back all the gains from previous days. This is due to the ongoing volatility in the Strait of Hormuz.
In terms of the generation situation, the price last week was £115.89 per megawatt-hour, with renewables accounting for 36% and fossil fuels for 26%. Not a great picture, but that is where we are at the moment.
We expect continued volatility due to the situation in Iran, although we read a report yesterday stating that talks were still ongoing in Pakistan, and we are hopeful of a positive outcome.
| Gas: Near curve prices gained yesterday as continuing tensions between the US and Iran pushed prices higher. Falling temperatures helped reduce gas for power demand. This morning, early trading is up on last night’s close. Power: Prices fell off yesterday. Increases to wind output softened prices in the prompt whilst out on the far curve a drop in UKA carbon prices, combined with NBP losses, pressured contracts downwards. This morning, implied pricing is up on last night’s settlement Oil: Oil markets declined slightly yesterday, largely driven by profit taking. Prices remain near their highest levels for a month, following escalations in the conflict in the Middle East. Carbon (EUAs): The ICE Dec-26 traded to €79.19/t yesterday. The contract opened this morning at €78.93/t. Carbon (UKAs): The ICE Dec-26 closed at £58.13/t last night. Opening this morning at £57.49/t. |
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