A late-session selloff pushed prices to their intraday lows just before the close, as the possibility of a peace deal continued to weigh on the market.

Gas Market

After Monday’s decline and a series of contracts hitting fresh 20-month lows, Tuesday’s session saw increased buying interest as participants moved to shore up positions. Consequently, all contracts out to Winter-27 posted day-on-day gains, with the strongest moves on the near curve. The front-month January-26 contract rose 1.76p/th – its largest gain in over three weeks – to settle at 72.29p/th, while Summer-26 closed higher at 64.81p/th. Despite the uptick, market fundamentals remain weak, though uncertainty surrounding a potential Russia–Ukraine peace agreement, and reported Russian strikes on Ukrainian gas infrastructure also contributed to the modest recovery.

Power Market

The GB day-ahead baseload contract fell on Tuesday, reversing much of Monday’s gains as forecasts for above-average wind generation continued to weigh on prices. The contract settled at £60.00/MWh, a day-on-day drop of nearly 10%, with elevated wind output expected to persist into the weekend. Further along the curve, firmer gas and carbon markets helped lift power prices, with all reported contracts posting gains. Summer-26 edged up to £66.25/MWh, an increase of £0.58. The EUA carbon market staged a late-session rally on Tuesday, with the expiring Dec-25 contract jumping into the close to settle at €82.85/tonne. Prices have held within a tight range since late November as traders position ahead of the contract’s expiry on Wednesday, 10 December.

Oil Market

Oil prices drifted lower on Tuesday, extending the previous session’s losses as traders weighed progress in Russia–Ukraine peace efforts alongside signs of comfortable supply and tomorrow’s U.S. rate decision. Brent settled at $61.94/bbl, down 55 cents, with WTI slipping to $58.25/bbl. Reports of Iraq restoring output at West Qurna 2 added to the softer tone, while speculation that a peace deal could eventually ease sanctions on Russian crude kept sentiment cautious. Attention also turned to the upcoming IEA report, which is expected to reinforce concerns about a growing surplus into 2026. U.S. inventory data from the API showed a sharp draw in crude stocks, though rising gasoline and distillate levels tempered the impact, while markets priced in a likely Federal Reserve rate cut.

Markets this morning

The NBP curve is trading lower this morning, with early activity reversing all of yesterday’s gains. The front-month January 2026 contract last traded at 70.18p/th, down 2.11p, while Summer-26 is also weaker at 63.35p/th. A settlement at or below this level would mark the lowest close for Summer-26 since March 2022. In the crude market, Brent opened broadly flat as traders await today’s U.S. interest rate decision. Meanwhile, on its final day of trading, the Dec-25 EUA carbon contract is down nearly 1%, last changing hands at €82.12/tonne.