Markets this morning
UK wholesale gas prices have eased from their early morning highs and are currently trading below Thursday’s settlement. The front month December contract last traded at 228.67p/therm, down almost 2.00p day on day. Crude oil is also trading lower following a reported increase in crude and refined product inventories last week. The inventory build reflects softer demand for refined oil products, adding further downward pressure to the market. European carbon prices are also weaker, with the Dec-27 contract falling by approximately €1/t in early trading to last exchange hands at €92.82/tonne.
Yesterday in summary
UK wholesale gas prices strengthened on Thursday as colder weather forecasts and renewed geopolitical tensions surrounding Iran reversed some of the recent easing in the risk premium. Brent crude also recovered, reaching $95.82/bbl amid escalating attacks on Saudi energy infrastructure and continued disruption to shipping in the Gulf, although higher production and US inventories limited gains. European carbon prices extended their upward movement, supported by strength across the wider energy complex and expectations of increased fossil fuel generation. GB baseload prices rose for a third consecutive session, with higher gas prices, falling temperatures and reduced wind generation forecasts adding further upward pressure.
