Wholesale gas & electric prices rose slightly on Friday but our view remains that the long term fundamentals continue to point to lower prices.
| Gas: Gas prices rose at the conclusion of last week, reversing the losses in Thursday’s session. Storage has fallen to 1441MCM, from 1712MCM on February 22nd. The UK is expected to receive two LNG cargoes by 10th March, which is a third of delivered in 2023 with six cargoes. Power: Power prices rose last Friday with support from the gas market. Wind generation is forecast to decline by 1.6GWs/day this week to 11.1GWs/day, back to the average output, pressuring the prompt. Oil: Oil prices strengthened at the close of last week, reversing Thursday’s losses. Healthy economic figures from Europe as the ECB look to lower borrowing costs, signalled an increase in demand. OPEC+ are expected to make a supply decision in this first week of March, leaving investors waiting. Carbon (EU ETS): The ICE Dec-24 found some support by the close of last Friday settling at €56.37/t. The contract has weakened on todays open, currently trading at €54.68/t. Carbon (UKAs): The ICE Dec-24 continued to soften at the end of last week, settling at £35.1/t. The contract is currently trading down at £34.1/t at the time of writing. |
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