Wholesale gas and electricity prices continued to drop on Tuesday, with sustained gains across the board for both gas and electricity.
The drops were nowhere near as spectacular as Monday’s, but they continued despite a resumption in hostilities, which we expect to impact Wednesday’s pricing.
| Gas: Gas prices continued to fall yesterday, being driven by the hopes of peace and the reopening of the Strait of Hormuz in the Middle East. Oman has a proposal to restore traffic through the Strait which brought more hope and reduced risk premiums. Curve price declines were limited due to low European storage and absent LNG which supported prices. Prices have rebounded this morning and returned to bullishness in the open. Power: Power prices tracked further losses in the gas and oil markets and fell. Bearish geopolitical signals drove prices downwards. Prices have opened stronger in the early trading window. Oil: Oil prices continued to fall yesterday to a new two-week low on hopes that a peace agreement could be reached between the US and Iran. Prices have dropped 16% over the previous three days. However, prices have opened bullish this morning as the US and Saudi Arabia attacked Iraq and Iran had missiles aimed for US bases in the Middle East intercepted. Carbon (EUAs): The ICE Dec-26 traded to €81.73/t yesterday. The contract opened this morning at €82.01/t. Carbon (UKAs): The ICE Dec-26 fell to £59.57/t yesterday, opening this morning at £59.29/t. |
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