On Friday, wholesale gas and electricity prices dropped markedly following sustained gains during the rest of last week. The good news is that, at a retail level, we are still seeing contracting day rates at around 20p and night rates around 16p per kWh for electricity. Gas rates are below approximately 4.5p per kWh. These prices are naturally subject to credit, but they give an indication.
| Gas: Gas prices fell at the end of last week. In the prompt, prices fell due to a combination of decreasing demand and pressure from wind generation creating 7.5GWs of power. Curve prices fell alongside the rest of the energy complex. British storage was at 27% fullness as of the 31 July, limiting further declines due to the risk of not being prepared for winter. Power: Power prices fell in line with the wider energy markets at the conclusion of last week. A high wind forecast of 11.8GWs for today pressured gas prices downwards. This week, wind generation is expected to average 9.8GWs/day, which is 20% above average for this time of year. Oil: Oil prices fell at the end of last week by almost $2/barrel due to the expectation of OPEC+ increasing supplies to capture more market share. Prices were also impacted by concerns around demand, due to poor US jobs data being released. Despite Friday’s losses, oil prices were up by 6% on the week. Carbon (EU ETS): The ICE Dec-25 fell to €71.04/t at the end of last week. Opening at €71.01/t this morning, the contract has softened down to €70.66/t at the time of writing. Carbon (UKAs): The ICE Dec-25 fell to £49.94/t last Friday, erasing the gains made throughout the week. The contract has opened at £50.42/t and is trading at £50.19/t at the time of writing. |
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