Wholesale gas and electricity prices rose across all periods on Thursday. This is due to the continued uncertainty in the Gulf.
As far as the generation side is concerned, the price was just below £150 per megawatt-hour, which is broadly in line with where it was last week. Whilst the volatility in the Middle East continues, we do not expect to see any change.
It has been interesting to read that up to 80% of the pre-Iran war volume of oil is now getting out of the Gulf on a daily basis. This hasn’t had a knock-on effect yet because the refineries in the Gulf have been disabled, and all that is coming out is crude oil. It needs to get to refineries to be turned into diesel, fuel oils, etc.
For now, our advice to our clients is to lock in contracts well in advance, as opposed to waiting until the last minute, as it’s been a painful experience this year for those who chose to wait.
At TPG, we can give advice on all forms of contracts, from fixed-term 12-, 24- and 36-month contracts through to flex, with different options, given that you can contract up to five years ahead of the contract expiry date.
| Gas: Gas prices rose yesterday, tracking the rise in geopolitical tensions as the fighting in Yemen continues. Prices have softened this morning. Power: Power prices strengthened alongside the gas market. Bullish carbon prices further supported power prices. Prices have continued to track the gas market and softened in the morning window today. Oil: Oil prices rose by 4% yesterday after concerns about supply disruptions as a hurricane approaches the gulf coast and producers have pre-emptively shut down 25% of its rigs. Prices softened this morning as the US President said the US will not attack Iran before the US elections due in November. Carbon (EUAs): The ICE Dec-26 closed at €86.88/t last night. The contract opened this morning at €87.09/t. Carbon (UKAs): The ICE Dec-26 traded to £64.30/t yesterday. This morning the contract opened £64.26/t. |
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