Wholesale gas and electricity prices continued their marked increases, particularly on near-term contracts, on Monday at the start of the new week. This is 100% down to the issues in the Strait of Hormuz, and until that is resolved, expect continued volatility. It is encouraging to see oil prices drop back a bit today, but that can change.
| Gas: Gas prices continued to rise yesterday amidst continued conflict in the Middle East. In the prompt, gains were limited by ample wind generation and an over-supplied grid. On the curve, Norwegian maintenance added further pressure. This morning, prices are at a similar level to last night’s close. Power: Most power contracts gained in value yesterday tracking NBP gains. Below average wind generation helped support prices in the prompt. Gains in UKA carbon helped support further out on the curve. This morning’s market opened close to last night’s settlement. Oil: Oil fell yesterday, as likely profit taking helped subdue the market, after six days of gains. Carbon (EUAs): The ICE Dec-26 closed at €83.80/t last night. The contract opened this morning at €83.82/t. Carbon (UKAs): The ICE Dec-26 traded to £60.58/t yesterday, opening this morning at £61.45/t. |
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