Wholesale gas & electricity prices dropped markedly on Thursday, especially in the near term. The spread remains very slim.
Over the past week, the generation price has remained subdued at £55.76 per MWh, which is good news. This was driven by renewables at 57% and fossil fuels at just 20%.
| Gas: Gas prices fell yesterday. Low domestic demand is expected to average at 126.3mcm/day for the remainder of the week. The UK also expects to receive one LNG cargo next week. Curve prices tracked the declines in the Oil market. Power: Power contracts were influenced by the softening of the wider energy complex yesterday. Well above average Wind generation in the prompt saw demand for fuel-fired power decline further. Oil: Oil prices fell 2% yesterday on the concern of softening US demand and an oversupplied market. Saudi Arabian exports to China are expected to surge in October, reducing China’s demand for US oil. Carbon (EU ETS): The ICE Dec-25 fell to €75.54/t yesterday. Opening at €75.32/t this morning, the contract is currently trading at €75.37/t at time of writing. Carbon (UKAs): The ICE Dec-25 fell to £55.99/t yesterday. The contract opened at £55.94/t this morning and is currently trading at £56.00/t. |
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