Wholesale Gas and Electricity prices rose on Tuesday.
TPG’s view is that this is just seasonal volatility, and not a long-term indicator.
| Gas: Gas prices strengthened yesterday due to uncertainty surrounding the Russia-Ukraine transit expiry due 1 January. However, gains were limited due to low seasonal demand because of warmer weather. The UK expects to receive seven LNG cargoes by the end of December, keeping supplies flowing. Power: Power prices rose yesterday, tracking the gas market. Nuclear generation has averaged 5.8GWs/day for December which is 2.3GWs less than the five-year average. Heysham has undergone planned maintenance and is due back online 26 December. Oil: Oil prices fell yesterday as weak Chinese demand continues to depress the market, despite the Chinese governments plans to stimulate growth. Market participants are awaiting the US Federal Reserve’s decision on whether to lower interest rates or not, which is expected today. Carbon (EU ETS): The ICE Dec-25 fell to €64.26/t yesterday. The contract is currently trading softer at €64.25/t this morning, after opening €64.47. Carbon (UKAs): The ICE Dec-25 fell to £33.50/t yesterday. The contract has not traded at the time of writing this morning. |
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