Wholesale Gas and Electricity prices spiked on Wednesday amid supply concerns. We assume that this will be short term, and will correct itself in the coming days.
| Gas: After three days of losses, the market rebounded yesterday, with gains throughout the curve. Given the return of Freeport LNG this proved surprising, potentially indicating uncertainty in the market. This morning, gas contracts are trading slightly below last night’s close. Power: Power prices closed up on the previous session, tracking the wider energy complex. Contrasting movements in carbon and coal pricing could limit far curve movements. The extended outage at the Torness 2 nuclear plant could potentially add support to prices in the prompt. Oil: Crude prices gained yesterday in stark contrast to the previous session, which neared lows of $80/bbl. API and EIA data released late Tuesday showed a decline to inventory. Generally, this would add a bullish sentiment to the market, but slow demand in the US has helped cap gains. Carbon (EU ETS): The ICE Dec-24 rallied yesterday, rising to €68.41/t. This morning, the contract is currently trading at €68.07/t. Carbon (UKAs): The ICE Dec-24 closed at £39.54/t yesterday. This morning, the contract is trading at £39.69/t. |
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