On Tuesday, wholesale gas and electricity prices continued their see-saw, giving up all of Monday’s gains, with electricity actually moving back down below Friday’s levels.
To put that into context, one-year electricity prices are now comfortably below £80 per MWh, and gas is approaching that level at £83.50 per therm. That said, the curves are very flat, with a range of less than 5% between one-, two-, and three-year deals.
Three-year contracts still remain the most competitive, which indicates to us that pricing, without any geopolitical interference, is likely to drop.
| Gas: Gas prices fell yesterday. In the prompt, a decline in domestic demand led to prices softening. Curve prices weakened due to the continuation of injections into the UK gas storage, removing the risk premiums in the seasonal contracts. Power: Power prices fell yesterday. Prompt prices fell due to the expectation of milder weather in the short term. Curve prices were influenced by the declines in the wider energy complex. Oil: Oil prices fell yesterday as traders waited for the data from the EIA inventory report and assumed a declining demand in the meantime. Traders haven’t seen the impact of a possible interest rate cut on the stock market, which is used as a signal for demand. Carbon (EU ETS): The ICE Dec-25 continued to fall to €71.50/t yesterday. The contract opened at €71.37/t this morning and is currently trading at €71.56/t. Carbon (UKAs): The ICE Dec-25 settled at £51.72/t yesterday. The contract opened at £51.65/t and continues to trade at this level at the time of writing. |
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