Prices dropped on Tuesday with electricity decreases greater than gas which, when combined with gas rising more than electricity, is driving more of a disconnect between gas and electric prices going forward
All in all these movements over the past 6 weeks are minor enough to have limited impact on retail pricing where we are still seeing contract offers at sub 25p/kwh day and sub 20p/kwh night on electricity with around 7p/kwh on gas. Don’t forget though that standing charges on both gas and electricity are often doubling.
| Gas: NBP contracts dropped in value throughout yesterday’s session, rolling back previous gains. Wind generation is expected to reach 10.1GW next week, reducing the need for gas for power generation, putting pressure on prompt contracts. Further out on the curve, upcoming pipeline maintenance was factored into prices, helping reduce losses. Power: Power contracts followed the bearish movement seen in NBP markets yesterday. Next week, temperatures have been revised upwards, slightly above the seasonal norm. Strong wind output is also expected. Algorithmic data also indicates the potential arrival of 4 LNG cargoes in the UK. Crude: Prices were pushed to their highest levels since November 2022 on the back of strong global demand forecasts and Libyan supply concerns, caused by weather disruption to key oil ports. OPEC released their monthly market report yesterday stating remained confidence on world demand throughout the next year. Carbon (EU ETS): The ICE Dec-23 closed at €81.08/t yesterday. Opening higher today at €81.25/t, the contract is trading at €80.94/t at time of writing. Carbon (UKAs): The ICE Dec-23 dropped to £39.35/t yesterday. Opening lower at £38.77/t, the contract is currently trading at £38.96/t. |
