Wholesale gas and electricity prices rose sharply on Tuesday but dropped back marginally on Wednesday. They are still well ahead of where they were one week ago due to the ongoing tensions in the Gulf.
It is hard to see where that conflict is going, as the Americans want to withdraw without losing face, while the Iranians are smelling weakness and becoming more emboldened by the day.
| Gas: Gas prices were mixed yesterday. In the prompt/near curve prices fell. Above average temperatures and strong wind generation are expected over the coming week, pressuring near term contracts. Profit taking is also expected to be a bearish factor following strong gains over the last fortnight. Out on the far curve, prices continued to gain. This morning, prices are down on last night’s close. Power: Power prices were also mixed yesterday. Prompt and near curve contracts moved in line with NBP movements. Falling carbon prices pressured some far curve contracts, offsetting the impact of gains in their NBP equivalents. The market is currently lower than last night’s settlement. Oil: Oil prices were pushed upwards yesterday, supported by ongoing supply concerns, largely caused by escalating conflicts in the Middle East and tight diesel supplies. Carbon (EUAs): The ICE Dec-26 closed at €87.14/t last night. The contract opened this morning at €86.80/t. Carbon (UKAs): The ICE Dec-26 traded to £65.10/t last night. This morning the contract opened £64.85/t. |
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