On Thursday wholesale Gas and Electricity prices were broadly stable, although Gas did rise slightly. We see this as short term, and not a cause of concern.
In the past week renewables accounted for 37% of UK electricity production, and this has helped the generated price to drop to around £67/MWh.
| Gas: NBP contracts rebounded slightly yesterday, following two days of losses throughout the curve. Wind output is expected to drop today, increasing gas for power demand. Out on the far curve prices look to have lifted to attract LNG cargo. Power: Power contracts gained yesterday, driven by NBP movements. Slight gains in carbon markets, helped far curve movements. (For today’s price outlook, as of last night’s close, please see the bottom table). Oil: After consecutive days of gains, oil prices stuttered yesterday. Commentary out of the US from Jerome Powell fuelled worry that interest rate cuts may not be as soon as expected. Yesterday’s fall in the USD made oil cheaper for non-USD currency holders. Carbon (EU ETS): The ICE Dec-24 closed at €58.50 last night. This morning the contract is currently trading up at €58.67/t. Carbon (UKAs): The ICE Dec-24 closed at £34.73/t yesterday. At the time of writing today, the contract is trading at £34.51/t. |
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