On Friday near-term gas and electricity prices rose because front-month gas jumped on the day, driven by a mix of cooler weather forecasts and a renewed geopolitical risk premium, which then fed directly into electricity prices where gas sets the marginal cost.
April and October start contracts also rose as short-term gas price strength, weather risk and supply uncertainty spilled beyond the prompt months into nearby seasonal periods.
| Gas: Most prices throughout the curve gained during Friday’s session. The grid was expected to finish the day short on Friday, despite increased storage withdrawals as the day went on. Wind also out-turned below forecasted levels, meaning more reliance on gas-fired power generation. Power: Power prices finished the week with most contracts gaining value. Movements in NBP contracts were a primary influencer of power movements throughout the day. Wind output was expected to remain slightly below seasonal norms for week 7, on Friday. Oil: Oil prices ended the week with prices recovering from losses earlier in the session. Market sentiment was dominated by changing political narrative, brought about by the current tensions between the US and Iran. Carbon (EUAs): The ICE Dec-26 settled at €78.73/t on Friday. The contract has opened at €79.20/t this morning. Carbon (UKAs): The ICE Dec-26 closed at £56.69/t on Friday. It opened lower this morning at £56.57/t. |
#gas #electricity #businessutilities #businessgas #businesselectricity