Wholesale gas and electricity prices rose markedly on Tuesday following gains on Monday.
the volatility we’ve seen this month is to be expected in the middle of winter, and is exaggerated when the weather gets abnormally cold.
Gas: Gas prices increased yesterday as a shortfall in wind output caused additional demand for gas fired generation. Demand is expected to be 40.1MCM above seasonal norms this week. Storage withdrawals are high, with the UK 26.5% below its two year average of 61.5% for this time of year.
Power: Power prices rose yesterday after a revised wind generation forecast for only 2.6GW/s to be generated today. This combined with several nuclear outages and a reduced import capacity is pushing prices upwards.
Oil: Oil prices continued to soften yesterday, with Brent Crude falling back below $80/barrel with market participants expecting the US to increase supplies after President Trump’s inauguration speech and mantra of “drill, baby, drill”. This would alleviate any supply tightness currently in the oil markets.
Carbon (EU ETS): The ICE Dec-25 continued its bullish run yesterday closing at €80.27/t. The contract opened at €79.7/t this morning but is trading at €79.47/t at the time of writing.
Carbon (UKAs): The ICE Dec-25 fell slightly yesterday, closing at £32.89/t. The contract has not yet started trading at the time of writing.



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