Wholesale gas and electricity prices continued their increases on Wednesday. The increases were nowhere near as marked as those seen on Tuesday but are still compounding the gains of the last 7 days. At a retail level, many of the suppliers have already built in these future increases, and the sharpest increases relate to the short term. See our separate blog about UK gas storage going into winter, which will affect all contracts expiring between now and May 2027.
| Gas: Gas contracts continued their bullish momentum yesterday as escalations in the Middle East continue to dominate sentiment. Bearish weather fundamentals helped to provide a ceiling for gains in the prompt. This morning, early market movement is slightly down on last night’s close. Power: Power prices continue to track bullish NBP movements, driven by escalations in the conflict between the US and Iran. This morning, implied pricing is similar to last night’s settlement. Oil: There were strong gains in oil yesterday with crude settling c.$95/bbl. Conflict in the Middle East proved the main driver as the US struck two Iranian vessels, and also targeted Iranian air defence. Carbon (EUAs): The ICE Dec-26 closed at €84.07/t yesterday. The contract opened this morning at €84/t. Carbon (UKAs): The ICE Dec-26 traded to £59.71/t yesterday. Opening this morning at £60.21/t. |
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