Wholesale gas and electricity prices finally fell on Tuesday, as expected, with the change in weather. Electricity gave up virtually all the gains of the last few days, while gas prices receded by about 50%. We expect further drops as the weather returns to typical ‘UK weather’.

Gas: Gas prices fell yesterday, following the remarks made by President Trump and his 50-day deadline for Russia. This softened the risk premiums as the market originally expected immediate sanctions. However, the market still awaits what further tariffs will be imposed by America on 1 August.  

Power: Power prices fell yesterday. Prices tracked the softening of the gas and oil markets. However, European heatwaves and Asian demand continue to provide a floor to prices, limiting their decline.

Oil: Brent oil futures softened yesterday. President Trump’s 50 day deadline to Russia to end the war with Ukraine to avoid further sanctions eased immediate supply concerns.

Carbon (EU ETS): The ICE Dec-25 strengthened yesterday and rose to €71.51/t yesterday. Opening at €71.23/t this morning, the contract continues to be selling at that price at the time of writing.

Carbon (UKAs): The ICE Dec-25 continued to rise up to £49.74/t yesterday. The contract opened at £49.46/t and is currently trading at £49.55/t.

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