Wholesale Gas and Electricity prices continued their downward momentum on Wednesday, with Winter ’24 Gas now back below 80p/thm.
We expect the downward trajectory to continue.
| Gas: Near capacity Norwegian gas flows, combined with warmer and more blustery weather, pressurised the NBP curve throughout yesterday’s session. Once again, low demand also played its part. British demand dropped by 10mcm yesterday compared to Tuesday, which is 60mcm below seasonal norm. Power: Power contracts on the near curve tracked losses in their NBP counterparts yesterday. Further out on the curve, bearish carbon and coal markets supported a decline in power contracts. (For our traders price outlook, as of last night’s close, please see the bottom table.) Oil: Prices continued to gain yesterday as the market expects to see an uptake in demand, countered by a drop off in inventory. OPEC+ has continued their policy on cuts, expected to carry on at 2.2 million bbl/day until the end of June. Carbon (EU ETS): The ICE Dec-24 closed at €57.41 last night, down on the previous close. Opening similar today, the contract is currently trading up at €58.16/t. Carbon (UKAs): The ICE Dec-24 closed at £34.39/t yesterday, down on Tuesday’s close. At time of writing today, the contract is trading at £34.53/t. |
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