Wholesale gas and electricity prices dropped on Tuesday as a result of the optimistic noises coming out of the Omani and Iranian discussions regarding access to the Strait of Hormuz.
We are hopeful that a resolution will be found in the coming weeks, which will mean that prices will drop even further and return to relative normality.
Let’s not forget that before the Iran war started in February, in the middle of winter, prices were continually dropping, with gas below 3.5p per kilowatt-hour and electricity below 20p per kilowatt-hour. We are optimistic that prices will return to these levels once normal supply routes are re-established.
| Gas: Gas prices fell yesterday, after a market correction and sell off after the previous day’s significant gains. In the prompt, low renewables supported demand for Gas. Increased buying interest of LNG in the Mediterranean has added further competition for potential imports to the UK. Prices have returned to bullishness this morning. Power: Power prices fell yesterday, tracking the sell off in the Gas market. French prices have risen due to nuclear curtailment, impacting neighbouring markets and limiting further declines in price. Prices have risen in the market open today. Oil: Oil prices continued to rise yesterday to a new weekly high. Doubts persist about a potential deal between the US and Iran, which raises concerns about supply disruptions. Prices have continued to rise this morning as attacks on two ships pushed tensions higher. Carbon (EUAs): The ICE Dec-26 traded to €82.44/t yesterday. The contract opened this morning at €82.69/t. Carbon (UKAs): The ICE Dec-26 fell to £59.13/t yesterday, opening this morning at £59.00/t. |
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