Wholesale gas and electricity prices were broadly stable on Friday, although of note were increases in Winter 26 and Winter 27 rates, which indicate a feeling in the market that the Iran war will continue for some time.
While our view remains that prices will drop as soon as Qatar’s gas starts to flow again, for now, there is no sign of an immediate resolution. The Iranians have a history of long wars!
| Gas: NBP contracts rebounded on Friday. A more bullish weather outlook led gains in the prompt, while further out on the curve, continued escalation in the Middle East going into the weekend pushed prices higher. This morning, markets have opened higher than last week’s settlement. Power: Most power contracts gained in value at the culmination of last week. Prompt prices were pushed higher with a downwards revision to wind forecasts. On the curve, gains followed NBP movements. This morning, implied prices are higher than last Friday’s close. Oil: Prices finished the week significantly higher, with strong week on week gains. Brent crude settled c.$96/bbl. Carbon (EUAs): The ICE Dec-26 closed at €84.18/t last week. The contract opened this morning at €84.08/t. Carbon (UKAs): The ICE Dec-26 traded to £59.73/t on Friday, opening this morning at £59.66/t. |
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