Gas prices drop amid easing geopolitical tensions
Gas prices dropped sharply on Friday amid easing geopolitical tensions and a falling carbon market.
Prices held relatively firm throughout the morning before easing during afternoon trading with the June-24 contract seeing some of the largest moves of the session, shedding over 0.15p/kWh when compared to its previous settlement.
A de-escalation in the Israel-Iran conflict likely served as the prime source of prices easing. Following a retaliatory strike from Israel, Iran has seemingly dismissed any further military action to be taken, perhaps providing some stability to the gas market.
Tumbling carbon prices also helped the situation further along the curve. According to ICE, the EUA benchmark contract observed day-on-day losses of almost €2.75/tonne.
This morning gas prices have continued their downward trajectory with the Winter-24 contract last trading around 0.05p/kWh lower when compared to its previous closing price.
The UK is currently consuming 33.90 GW’s of electricity (10:30 – 11:00).
Wind has dropped this week as forecast and is only generating 3.53 GW’s (9.73%) of the UK’s total electricity demand with gas having to contribute 14.14 GW’s (38.94%) of the total.
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