Unsurprisingly, wholesale gas and electricity prices rose markedly on Wednesday following the escalation of hostilities in the Middle East on Tuesday night.
This volatility is expected to continue in the weeks ahead, with a large delta now appearing between Winter 2026 and Summer 2027 prices for both gas and electricity.
| Gas: Gas prices rose yesterday as the geopolitical tensions in the Middle East reignited. Exchanges of strikes between the US, Iran and Saudi Arabia saw the hope of a peace deal diminish and risk premiums rise. Prices have softened in the early trading window. Power: Power prices were influenced by the underlying energy mix and rose yesterday. Low renewables in the prompt contributed to gains. Curve prices tracked bullish prices from the re-escalations in the Middle East. Prices have fallen in the market opening this morning. Oil: Oil prices rebounded by 7% yesterday, erasing the previous day’s losses. Airstrikes resumed between the US and Iran, whilst the number of countries involved increased. Saudi Arabia joined the US in strikes against Iraq-based but Iran-supported groups, as Saudi Arabia blamed them for attacks on Saudi oil facilities. Additionally, US domestic supplies are falling as inventories fell to a multi-year low. Prices have continued to rise in the market open this morning. Carbon (EUAs): The ICE Dec-26 traded to €82.02/t yesterday. The contract opened this morning at €81.81/t. Carbon (UKAs): The ICE Dec-26 fell to £59.49/t yesterday. Opening this morning at £59.36/t. |
#gas #electricity #businessutilities #businessgas #businesselectricity