Wholesale Gas and Electricity prices continued to drop on Friday and we expect more sustained, all be it modest, drops in the coming weeks and months as we go into Summer.

Gas: NBP prices dropped off at the tail end of last week. Strong wind forecasts over the weekend were expected to limit gas for power demand. Storage withdrawals over week 13 have eased whilst nominations into Easington increased day on day. Power: Most contracts throughout the curve shed value at the culmination of last week. The power front week contact was pressured on Friday by low forecasted wind output over week 14, although it is expected that warmer temperatures and strong solar generation should offset this. It was announced that EDF’s Hartlepool’s reactor 2 outage would be extended until 9 April, taking 620MW offline. Oil: Crude prices fell on Friday with the market seeing profit taking on the back of recent gains. The prominent market driver over the past week was the news of secondary tariffs aimed at buyers of Venezuelan oil with Indian and Chinese buyers already starting to take notice and reduce imports. Carbon (EU ETS): The ICE Dec-25 closed at €68.80/t last week. After a volatile morning today, the contract is trading around €68.08/t. Carbon (UKAs): The ICE Dec-25 fell to £44.59/t on Friday. The contract is currently trading at £44.92/t this morning.

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