Wholesale gas and electricity prices resumed their upward momentum on Friday, which was not a pleasing end to the week.
However, there was positive news over the weekend, with no missile attacks from either side for two nights. We are hopeful that wholesale gas and electricity prices will follow the oil market in dropping on Monday.
| Gas: Gas prices continued to rise at the end of last week. In the prompt, renewed risk premiums were driven into nearer dated contracts as the chance of nuclear curtailment in France and Sweden rose to 85%, due to high temperatures across Europe this week and an additional outage at Norway’s Dvalin gas field. Curve prices also rose as the market remains cautious about weekend escalations in the Middle East. Prices have opened lower this morning, driven by bearish oil sentiment. Power: Power prices rose at the end of last week. Prompt prices rose despite higher renewable generation as Wind is forecast to generate an average of 9.9GWs/day this week. Overall, Power prices increased due to being driven by the underlying Gas market gains; however, bearish Carbon prices limited the gains on the further out curve. Prices have opened lower this morning, driven by bearish oil sentiment. Oil: Oil prices fell by 5% at the end of last week after peaking at over $100/barrel. Sources declared that China has been pushing to resume stalled peace talks between the US and Iran. Price declines were limited as the US vowed to punish Iran on behalf of Houthi Red Sea attacks. Oil prices have continued to fall in the early morning trading window. Carbon (EUAs): The ICE Dec-26 traded to €83.40/t last Friday. The contract opened this morning at €83.78/t. Carbon (UKAs): The ICE Dec-26 fell to £59.83/t last Friday, opening this morning at £60.43/t. |
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