Gas and electricity prices resumed their downward trajectory on Monday and with more storms forecast, meaning increased wind production, we expect this to continue.
The gap between Q2/Q3/24 and Summer 25, remains larger than we would like, but we expect this to reduce in the coming months.
|Gas: Gas prices fell yesterday due to the combination of an increased Wind output and less demand for Gas in heating and gas-fired power. However, delays of LNG arriving in the UK due to storm Isha has provided some resistance to the declines.
Power: Power prices also fell yesterday as Wind generation reached a forecast potential of 17.5GWs/day for the remainder of the week, reducing demand for more expensive fuel-fired generation.
Oil: Oil prices continued to rise yesterday due to the growing tensions in the Middle East out-weighed concerns of the Global economy slowing in 2024, reducing demand.
Carbon (EU ETS): The ICE Dec-24 fell to €62.04/t yesterday. The contract is currently trading at €62.71/t at the time of writing.
Carbon (UKAs): The ICE Dec-24 also fell, closing at £34.65/t yesterday. Opening stronger this morning, the contract is currently trading at £35.3/t.
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