Wholesale gas and electricity prices dropped markedly on Friday, with electricity now in the mid-£70 per MWh range and gas touching 80p per therm. We anticipate a continued downward trend, although there may be patches of volatility.
| Gas: Gas prices fell at the conclusion of last week. Domestic demand fell below seasonal average in the prompt. In the curve, British and European storage levels continue to climb, easing the risk premiums on curve products. The UK expects to receive two LNG cargoes by the end of the week, further increasing storage injections. Power: Power prices continued to track the gas market at the end of last week and fell alongside. Despite below-seasonal average wind generation, prices still fell as demand also fell. Further out, power contracts softened as they tracked the losses in the carbon market. Oil: Oil prices fell last Friday as traders awaited talks between the US and Russia about ending the war in Ukraine. Any agreement would see the easing of sanctions on Russia. Carbon (EU ETS): The ICE Dec-25 fell to €70.68/t at the end of last week. The contract opened at €70.72/t this morning and is currently trading at €70.58/t. Carbon (UKAs): The ICE Dec-25 fell to £50.80/t on Friday. The contract opened at £52.43/t and is trading back at £50.80/t at the time of writing. |
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