Prices continued to drop on Friday (15/12/23), Gas for Winter 24 is now painfully close to 100p/thm.
Our advice remains to enter in to the shortest possible contracts with expiry dates no later than 30/09/24, in order to fix in the current gains but then be able to capitalise on future gains next Spring/Summer.
|Gas: NBP prices continued to fall throughout Friday’s session as an expected 40% decline in gas demand weighed on the prompt. Port data indicates that Britain can expect 7 LNG vessels to berth by 22nd December.
Power: Power curve contracts continued to fall yesterday, influenced by losses at the NBP gas hub. Weather fundamentals continued to pressure prompt contracts. (For today’s price outlook, as of Friday’s close, please see the table below)
Oil: Oil prices fell towards Friday’s market close on the back of news that US interest rates won’t be falling as soon as the market expected. In turn the USD gained in value, making oil more expensive for non-USD currency holders.
Carbon (EU ETS): The ICE Dec-23 closed at €66.35/t last Friday. Opening at €66.90/t this morning, the contract is currently trading at €66.51/t.
Carbon (UKAs): The ICE Dec-23 rose to £34.13/t on Friday, the contract is currently trading up at £34.87/t.