Wholesale gas and electricity prices ended the week lower, which was a welcome relief given the significant increases over the previous 10 days. We expect Monday to reverse this, given reports of further attacks on both the Saudi pipeline and shipping in the Strait of Hormuz. The situation remains extremely volatile, and anyone considering entering into new contracts needs to be very careful regarding the term they commit to.
Gas: Gas prices eased back on Friday as a correction from the mid-week highs. This morning, prices have opened higher following an attempted attack on a Saudi oil pipeline that caused flows to be suspended. Power: Power prices tracked the underlying Gas market on Friday. Curve prices rose again this morning on the back of developments in the Middle East. Oil: Oil prices dipped slightly on Friday as the market corrected itself following mid-week increases. This morning, prices have jumped higher following the attack on the Saudi pipeline which transports 4% of global supplies. Carbon (EUAs): The ICE Dec-26 closed at €84.98/t last night. The contract opened this morning at €85.72/t. Carbon (UKAs): The ICE Dec-26 traded to £62.45/t yesterday, opening at £62.39/t this morning. |
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