There was very little movement on Friday in terms of wholesale prices, with some marginally increasing and some marginally decreasing.
Our view remains that the market fundamentals support continued price drops once the Winter volatility recedes.
| Gas: Gas prices rose at the conclusion of last week as the cold snap pushed demand for Gas upwards. Demand was expected to rise 105MCM above seasonal norms over the weekend, pressuring prompt prices. The UK expects 3 LNG cargoes by the 10th of December. Power: Power prices rose throughout most of the curve last Friday. Bullish movement from the increased Gas demand moved Power prices upwards. Far curve gains tracked increases in the Coal market whilst being limited by falls in the Carbon market. Oil: Oil prices fell last Friday despite OPEC+ declaring a further production cut of 900,000 barrels/day for Q1 of 2024. New OPEC+ member, Brazil is moving against the group as it expects to increase output over the next few years, causing traders to question their confidence in OPEC+ direction. Carbon (EU ETS): The ICE Dec-23 rose to €72.49/t on Friday. Opening at €71.99/t this morning, the contract has been volatile but is currently trading softer at €71.56/t at the time of writing. Carbon (UKAs): The ICE Dec-23 fell to £38.49/t during last Friday’s session. Opening today at £38.51/t, the contract has rose to £39.00/t at the time of writing. |
