Wholesale Gas and Electricity prices continued their downward momentum on Friday with electricity now below £75/MWh and gas rapidly approaching 80p/thm, both for 1 year contracts.

We expect further downward momentum in the months ahead. 

Gas: Gas prices softened at the end of last week. Prices fell as domestic demand fell by 72mcm down to 171mcm/day, alongside the expectation of the UK to receive several LNG cargoes over the next few weeks, keeping supplies ample whilst demand is down. This may encourage more storage injections. Power: Power prices fell at the conclusion of last week, tracking losses in the gas market. Prompt prices fell in response to a revised forecast of solar generation, up to 4.1GWS/day for week 18, well above average. Wind generation is slightly below average, with 6.5GWs/day expected. Oil: Oil prices strengthened last Friday despite over supply concerns dominating the morning session. China and the US are gesturing to ease tariffs between each other, providing the market enough bullish sentiment to outweigh over supply concerns. However, an actual agreement between the two countries is far off. Carbon (EU ETS): The ICE Dec-25 closed close to the previous session at €66.43/t. After opening at €66.14/t this morning, the contract is currently trading weaker at €65.51/t. Carbon (UKAs): The ICE Dec-25 traded flat last Friday, closing at £47.46/t. The contract is currently trading at £47.69/t this morning, after opening at £47.44/t.

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