On Tuesday, wholesale gas and electricity prices jumped markedly, which was unexpected. We are hopeful this is just a blip and that the markets will settle back as the geopolitical situation stabilises.
| Gas: Gas prices were bullish across all contracts yesterday. A trade agreement between the EU and US increased market certainty. This supported rising prices as demand is expected to rise as businesses know what to expect. Power: Power prices increased yesterday, tracking the gains throughout the wider energy complex. In the prompt, a low wind forecast of 2.6GWs/day lead to an increased demand for more expensive gas-fired generation. Oil: Oil prices rose yesterday after a trade a deal between the EU and U.S was met with an agreement of a 15% tariff deal, avoiding a potential trade war. President Trump has also threatened Russia with a deadline to end the war with Ukraine within 12 days or face tougher sanctions. Carbon (EU ETS): The ICE Dec-25 fell to €70.65/t at the end of last week. Opening at €70.65/t this morning, the contract is currently trading at €70.92/t. Carbon (UKAs): The ICE Dec-25 rose to £51.16/t yesterday. The contract opened at £51.06/t this morning and is currently trading at £51.21/t at the time of writing. |
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