Wholesale gas and electricity prices dropped off on Monday, with the sharpest drops being in the period between now and winter 2025. The drop off is a result of optimism around the talks taking place to resolve the current Ukraine war. Expect further volatility as these talks ebb and flow.
Our outlook remains optimistic that prices in the summer will be below those seen last year.
| Gas: The market continued its downwards trend yesterday. Bearish weather fundamentals weighed on prices whilst the market awaits the impact of potential news on German storage targets. Power: Prices fell during yesterday’s session, tracking a bearish wider energy complex. So far this morning, the contracts that have traded are trading down on last night’s close. Oil: The market awaits the first day of the Ukraine – Russia peace talks. News that OPEC+ may consider delaying the production increase due to start in April would likely bring a bullish market reaction. The front month closed at $74.68/bbl last night. Carbon (EU ETS): The ICE Dec-25 fell yesterday closing at €77.21/t. The contract is currently trading lower at €76.88/t this morning. Carbon (UKAs): The ICE Dec-25 shed value, settling at £45.29/t. The contract is trading lower again at £44.36/t at the time of writing this morning. |
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