Wholesale gas and electricity prices rose significantly due to the continued tensions in the Strait of Hormuz. Our outlook remains that this is a temporary issue. Unless you have contracts expiring right now, our advice is to hold off on committing to anything longer than necessary.
| Gas: Gains continue for gas contracts. Geopolitical concerns remain a main focal point for traders as the US was about to enter its 12th night of airstrikes. Early market movement is up on last night’s settlement. Power: Power prices continued to rally yesterday, with support from gas and carbon contracts. Bullish European prices brought further support. Temperatures and wind output for next week are expected to remain around average levels. This morning, implied market prices are higher than last night’s close. Oil: Oil prices gained yesterday as the US–Iran conflict continues to escalate. In the Red Sea, Houthi rebels attacked two Saudi Arabian oil tankers, forcing multiple tankers to divert. Carbon (EUAs): The ICE Dec-26 traded to €86.63/t last night. The contract opened this morning at €85.8/t. Carbon (UKAs): The ICE Dec-26 closed at £63.21/t yesterday. Opening this morning at £62.75/t. |
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