Prices generally dropped back on gas and were broadly neutral on electricity last Wednesday
Our advice remains to lock in for maximum 12 months, better still to the end of the summer curve at 30/9/24 if at all possible, as soon as possible if you have any contracts expiring before 30/4/24. Even though the fundamentals remain strong and prices may drop there are often spikes in the winter when there’s a cold snap or some unexpected maintenance and sod’s law says that will happen precisely when you need to renew. By going for a short term contract you are giving yourself certainty now while being able to benefit from price drops when they occur as you can sign a new contract at any time in the period from 12 months before your current contract expires.
|Gas: NBP contracts were seen to shed value yesterday. Near curve contracts were impacted by strong storage levels and shippers choosing to increase injection nominations day on day. This morning most near curve contracts have opened down on last nights close.
Power: A mixed bag for Power prices throughout the curve yesterday. With key market fundamentals pressuring the near curve. Rises within Carbon markets supported the far curve.
Crude: Oil prices fell yesterday after a sharp rise in US inventory levels. Levels rose by 3.6m/bbl last week, 1.8m/bbl above market expectation.
Carbon (EU ETS): The ICE Dec-23 closed at €79.80/t yesterday. The contract is yet to trade at the time of writing.
Carbon (UKAs): The ICE Dec-23 closed at £42.50/t yesterday. The contract has not yet traded at the time of writing.