Wholesale gas and electricity prices rose marginally on Tuesday, with larger gains in the immediate term and very modest gains further out. We expect this volatility to continue in the coming days, with the potential for swings in both directions.

Gas: Gas prices rose yesterday. A combination of weak wind generation supporting gas-fired power demand and an increase in domestic demand of 12% saw prices rise in the prompt. The EU has set out proposals to phase out Russian gas by 2028, with some concessions for central EU countries.

Power: Power prices rose yesterday. A low wind output of 5.2GWS saw prompt prices gain despite a high solar output of 3.9GWs. The curve tracked the gains in the gas market and the EU’s new proposals.

Oil: Brent crude rose to $76.45/barrel yesterday as the market weighed the chances of supply disruption from the Iran-Israel conflict. Two tankers collided in the strait of Hormuz after electronic interference has increased during the conflict.

Carbon (EU ETS): The ICE Dec-25 fell to €74.64/t at yesterdays close. The contract opened at €74.84/t this morning and is currently trading at €74.8/t, after falling to €74.55/t.

Carbon (UKAs): The ICE Dec-25 fell to £53.30/t yesterday. The contract opened this morning trading at £53.48/t and is currently trading at £53.4/t.

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