Wholesale gas and electricity prices rose markedly on Friday in the short term, albeit contracts further out saw much lower increases or even some decreases for Winter 2028 and 2029.
The news from the Gulf is mixed, and that is what has been driving prices.
| Gas: Gas prices rose last Friday as the IRGC (Islamic Revolutionary Guard Corps, a branch of Iran’s military) struck a significant LPG carrier moving through the Hormuz as it moved through an “illegal” route. Prices have continued to rise in the market open. Power: Power prices tracked upwards at the end of last week, following the bullish Gas and Oil markets. Prices have continued to track the Gas this morning and have risen in the open. Oil: Oil prices settled higher on Friday as Hurricane Isaias forced the closure of 70% of production in the northern part of the Gulf of Mexico. Oil prices have opened softer this morning as talks with Iran to end the war had been “productive” according to the US president. Additionally, Ukraine and Russia had agreed to halt attacks on each other’s energy facilities following a controversial US diesel-supply deal with Russia. Carbon (EUAs): The ICE Dec-26 closed at €86.94/t last Friday. The contract opened this morning at €87.21/t. Carbon (UKAs): The ICE Dec-26 traded to £64.09/t last Friday. This morning, the contract opened £64.30/t. |
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