Both gas and electricity prices dropped back on Thursday as anticipated.
On the generation front renewables contributed over 52% of UK electricity production in the last week, meaning that the price per MWh dropped from almost £90 to £68. The storms delivered some good!
We are seeing more competition at retail and expect this to continue, as wholesale prices continue to drop and these reductions pass through into the retail market.
|Gas: Bearish fundamentals helped drive NBP prices down yesterday. Strong storage levels and lower than anticipated demand helped lead to losses throughout the curve. An extension to outage at UKCS Barrow helped limit losses to near curve contracts.
Power: Value lost in NBP pressurised the Power curve yesterday. Benchmark UKA contracts also shed value, leading to bearishness further out on the curve. Wind output in week 6 has been revised to above norm by 10-20%, whilst temperatures that week are also expected to be slightly above seasonal expectations.
Oil: Prices gained throughout yesterday’s session; the release of positive Global economic data fuelled hopes of increased demand. US GDP out turned positively in Q4 2023, this news helped strengthen USD, making oil less affordable for non – US currency holders.
Carbon (EU ETS): The ICE Dec-24 contract stuttered yesterday. Closing at €63.21/t yesterday. This morning the contract is trading down at €62.90/t.
Carbon (UKAs): The ICE Dec-24 fell yesterday, closing at £33.96/t. Opening flat this morning, the contract is currently trading up at £34.03/t.
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