Wholesale Gas and Electricity prices dropped significantly on Monday following the calming of tension in the Middle East over the weekend.
The curves going forward are not as flat as they were, but still give reasons for optimism as far as the market fundamentals driving lower prices.
| Gas: NBP contracts continued to shed value yesterday as tensions in the Middle East softened slightly. Low wind generation and colder temperatures increased gas demand throughout yesterday. Temperatures are expected to remain below seasonal norms for the remainder of the week, potentially increasing gas demand. Power: Power prices tracked their NBP counterparts yesterday. Wind output for the rest of the week has been revised upwards, now falling within seasonal norms. Next week’s wind output has also been revised upwards by 1.4GW. Oil: As tensions in the Middle East eased slightly, so did oil prices. The market may now change focus back to the conflict between Ukraine and Russia, where the prospect of US aid will likely extend Ukraine’s abilities to carry on fighting. Carbon (EU ETS): The ICE Dec-24 fell to €66.30/t yesterday. This morning the contract is currently trading at €66.44/t. Carbon (UKAs): The ICE Dec-24 closed higher at £35.96/t yesterday. The contract opened higher this morning at £36.00/t, and despite movement up and down, it’s still trading at that level at the time of writing. |
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