As we forecast prices dropped back on Tuesday giving up some of the gains on electricity but lesser reductions on gas. We expect further reductions in the coming days.
| Gas: Gas prices fell yesterday, retracing the gains made on the previous day. The UK expects to receive four LNG cargoes by the end of September, keeping supplies healthy. Norwegian production constraints were expected to rise, providing resistance to the declines in the prompt. Power: Power prices softened yesterday following a higher Wind output than originally forecast. Additionally, the declining Gas prices supported further losses yesterday. Crude: Oil prices edged higher yesterday despite a strengthening $USD as supply restrictions outweigh other elements. The 1.3m barrel/day supply cut from Russia and Saudi Arabia continue to dominate market direction. Carbon (EU ETS): The ICE Dec-23 closed at €82.92/t yesterday, a sharp decline on the previous close of €85.27/t. The market opened softer this morning at €82.68/t and is trading at €82.75/t at the time of writing. Carbon (UKAs): The ICE Dec-23 closed at £35.7/t, slightly downwards from the previous close of £35.87/t. The contract is currently trading at £35.61/t at the time of writing. |
