Wholesale gas and electricity prices rose again in the UK on Friday, resulting in a poor end to the week. We expect continued volatility until the US midterms are concluded in November due to the ongoing Gulf conflict and its effects on global gas supplies, which have the most direct influence on UK electricity prices.

Gas: Gas prices continued to move higher at the end of last week. The market has seen unplanned outages as Norway’s Troll and Kristin fields have removed 11.2mcm/day out of the daily supplies. The curve rose alongside the growing number of attacks on shipments in the Strait of Hormuz. Prices have opened bullish this morning.    Power: Power prices were driven upwards by the rest of the energy complex last Friday. Geopolitical uncertainty and high carbon costs continue to push prices up. Prices have continued their bullish run in the market open.   Oil: Oil prices rose at the end of last week, as Brent crude reached $110/barrel for the first time since May. Escalating tensions in the Middle East continue to drive prices up as traders are concerned with supplies. This morning, prices have fallen from their recent five-month high as the US president looks to ease sanctions on Russia to allow more oil into the market.   Carbon (EUAs): The ICE Dec-26 closed at €85.41/t last Friday. The contract opened this morning at €84.93/t.    Carbon (UKAs): The ICE Dec-26 traded to £63.41/t last Friday. This morning the contract opened at £63.05/t.

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