Wholesale gas and electricity prices dropped on Friday, which was a welcome end to the week.
However, they rose dramatically this morning following the increased escalation in the Iran conflict over the weekend.
We expect to see further volatility in the coming days until the situation in the Gulf settles.
| Gas: Gas prices fell at the end of last week, retracing the previous session’s gains as Norwegian supplies increased in the prompt and geopolitics looked to be settling before the weekend. However, prices have risen this morning as the Middle East re-escalates as the US and Iran issue new strikes. Power: Power prices continued to track the Gas market at the end of last week. High renewables in the prompt helped push prices lower. The curve settled downwards following Gas prices as no direction was given by a sideways Carbon market. Prices have risen this morning on the news of escalating strikes in the Middle East. Oil: Oil prices fell last Friday as traders grew hopeful that the Strait of Hormuz would return to free flowing again. However, prices finished the week on sharp gains, around 4% in total. Despite the pre-weekend hopes, prices have opened 4% higher this morning as the US and Iran announce a new series of strikes. Carbon (EUAs): The ICE Dec-26 traded to €79.20/t on Friday. The contract opened this morning at €78.97/t. Carbon (UKAs): The ICE Dec-26 closed at £56.40/t last Friday, opening this morning at £56.05/t. |
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