26th February 2025 Energy Price Alert – UK Gas & UK Electricity
Wholesale Gas and Electricity prices returned to dropping on Tuesday, as we anticipated!
Gas: Gas prices fell yesterday taking influence from the oil markets. The UK expects to receive ten LNG cargoes by the end of this week, signalling strong supplies and the opportunity to refill storage.
Power: Power prices softened across the curve yesterday, continuing to track the gas market. Prices in the Day ahead contracts rose following a revised downwards forecast of wind generation, with 8.8GWs/day expected for remainder of this week, 10% below norms.
Oil: Oil prices fell yesterday following bearish economic news from the US and Germany. The US declared that tariffs on their neighbours, Canada and Mexico, will begin 4 March, which is likely to impact demand. The German economy shrank in Q4 with concerns that a recession is now pending. However the announcement of tighter US sanctions on Iranian exports has provided some support to slow the decline in prices.
Carbon (EU ETS): The ICE Dec-25 fell yesterday, settling at €71.75/t. The contract is trading lower at €72.07/t this morning.
Carbon (UKAs): The ICE Dec-25 fell back from the previous day’s gains yesterday, down to £40.67/t. The contract is currently trading at £40.56/t.
