Wholesale Gas and Electricity prices rose further on Monday, maintaining the recent increases.
This is driven by reductions in American supply, which is an attempt by the Americans to increase prices having secured 50% of the European market post Ukraine. Russia is now increasing LNG shipments, which are not subject to sanctions, and there is 50% more capacity due onstream by the end of 2025.
We believe that this upward momentum will continue for a number of weeks, but the overall trend is still down. Movement over the past few days is positive, but beyond that all movement is negative.
At a retail level we are now seeing contracts below 19p/kWh, which is good news.
| Gas: Gas prices rose yesterday as two further outages were listed in the Norwegian Gas fields, outweighing any bearish sentiment. Further out contracts were also supported by increasing Carbon costs. Power: Power prices rose yesterday following the wider energy complex, with further out contracts being influenced by Carbon. Oil: Oil prices fell yesterday after a seven-month high, amidst hopeful ceasefire talks between Hamas and Israel. Investors will be awaiting economic data from a variety of sources to compare global demand for oil. Carbon (EU ETS): The ICE Dec-24 rose to €63.51 last night. This morning, the contract is currently trading up at €62.57/t. Carbon (UKAs): The ICE Dec-24 rose to £35.94/t yesterday. At time of writing today, the contract is trading at £35.46/t. |
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