On Wednesday, electricity prices were stable, but near term gas prices rose marginally and our view remains that wholesale prices will continue to be under downward pressure.
|Gas: Despite market outlook remaining bearish, NBP contracts bounced back yesterday from the large losses suffered in the previous session. Wind generation over the next couple of weeks has been revised in line with seasonal norms.
Power: The power day ahead contract fell significantly yesterday coinciding with a 11.9GW rise in wind production. Next week’s wind output has been revised downwards supporting prompt prices. Further out on the curve bearish carbon pricing has seen some power contracts fall in value.
Oil: Oil prices fell significantly yesterday due to concerns over weak demand, despite US crude inventories sitting around 1% (445m bbl) below the 5-year average. Vladimir Putin travelled to the UAE yesterday and is also expected to visit Saudi Arabia, the market is seeing this as a sign of enhanced engagement between oil producers.
Carbon (EU ETS): The ICE Dec-23 closed at €68.82 yesterday. Opening at €69.04/t this morning, the contract is currently trading at €69.08/t at time of writing.
Carbon (UKAs): The ICE Dec-23 fell to £33.16/t during yesterday’s session. The contract is currently trading at £34.13/t