Wholesale gas and electricity prices gave up all of the games from recent days on Tuesday and as we predicted we expect the downward trend that we have seen in recent months resume.
From 01 April 2024, the Climate Change Levy (CCL) discount rates will change as outlined below.
| Gas: Gas prices fell yesterday after a series of bearish events. High levels of wind generation lowered demand for gas powered generation, causing the grid to be oversupplied. Additionally, demand for gas was further reduced by mild temperatures, pressuring near curve prices further. Declines were limited by the UK expecting only one LNG cargo by the end of March, a four-cargo reduction on last year. Power: Power prices fell yesterday due to the underlying gas and carbon markets. Improved wind generation forecasts helped bring prices downwards in the prompt. UK nuclear generation is expected to reach 5GWs in April, 1.2GWs more than the average. Oil: Oil prices reversed the previous days gains as the market weighed the impact of Russian output cuts, whilst the UN calling for an immediate ceasefire in the Middle East has also pressured prices. Traders are currently waiting on Personal Consumption Expenditure (PCE) inflation data for clues on interest rates. Carbon (EU ETS): The ICE Dec-24 fell to €62.28 yesterday after posting a month long high of €65.00/t in the previous session. The contract is currently trading softer at €62.23/t at the time of writing. Carbon (UKAs): The ICE Dec-24 fell to £38.19/t yesterday, after its recent peak. At time of writing the contract is trading at £37.74/t. |
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