Wholesale gas and electricity prices rose markedly on Tuesday as the markets reacted to geopolitical issues. There are currently a number of different issues around the world, which are having a destabilising effect on the markets. Our advice right now is not to contract unless absolutely necessary.
| Gas: Gas prices continued their recent bullish run yesterday. In the prompt, a decline in wind generation lifted demand for gas fired output, as the system was expected to close 11.8mcm short. Curve prices continued to rise with President Trump’s declaration of adding secondary sanctions on Russian exports. Power: Power prices continued their bullish momentum yesterday. In the prompt, a reduced forecast of renewable generation saw prices rise. Gains in the wider energy complex continued to drive the curve. Oil: Oil prices rose 3% yesterday, following optimism of decreased tensions between the US and their major trading partners. Price gains continued to be supported by President Trump threatening Russia with more sanctions if Russia didn’t end the war with Ukraine in 10 days. Carbon (EU ETS): The ICE Dec-25 rose to €73.08/t yesterday. Opening at €73.27/t this morning, the contract is currently trading at €72.92/t. Carbon (UKAs): The ICE Dec-25 continued to rise to £52.18/t yesterday. The contract opened at £51.47/t this morning and is currently trading at £51.79/t at the time of writing. |
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