Wholesale Gas and Electricity prices continued to soften on Tuesday, and we are hopeful that this will continue. Please be aware that any changes in the Ukraine situation will impact pricing directly.

Gas: Gas prices softened yesterday in the prompt as the rise in wind generation lead to less demand for gas. Next week, temperatures are expected to be 1-3°C higher than average for the time of year, further limiting heating demand. British storage is currently less than half of last year’s position at this time of year. The UK currently expects five LNG cargoes in the first week of March.   Power:  Power prices weakened yesterday. Well above average wind output of 17.3GWs/day has been forecast for the remainder of this week, limiting gas fired demand. Week 9 wind production throughout Europe is also expected to be above average, which may see prices fall further as the continent exports to the UK.   Oil: Oil prices rose yesterday. Despite talks for ceasefire between Ukraine and Russia, the conflict continues with prices rising following a Ukrainian drone attack on the Russian Kazakh pipeline. This has disrupted around 40% of the pipeline’s capacity.   Carbon (EU ETS): The ICE Dec-25 continued to soften yesterday, falling to €75.74/t. The contract is trading lower at €75.66/t this morning.   Carbon (UKAs): The ICE Dec-25 continued its recent descent yesterday, falling to £44.26/t. The contract is trading lower again at £44.11/t at the time of writing this morning.

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