Price report for Thursday 7th December 2023

Power & Gas: Mixed fundamentals signals today with gas supplies reduced only slightly, but also some volatility in the near term wind forecasts adding some supply risk to power. Demand remains strong but forecasted to soften in the next few days as we emerge from the recent cold spell. The within day gas system opened 4mcm short. Forward prices opened lower than yesterdays close and looked to continue spiralling down until the Sum 24 fell below the £85 level which seemed to trigger a late flurry of buying into the close. Further afield, LNG price spread between Asia and Europe have registered their widest level in almost 2 years with shipping restrictions stifling freight rates and contention for sport cargoes high.

Carbon: Whilst technical analysts may reference the RSI on the Dec-23 contract indicating the market as “oversold”, fundamentals also appear consistent with the rally with the renewables forecast volatility around wind and cloud coverage across NW Europe. With only 5 trading sessions remaining before the Dec-23 contract expires, quite difficult to call the technical trend where positions are closing/rolling out exposures.

Oil: Whilst the OPEC+ group of nations strive for a supply cut deal, a weaker global economic outlook dominates. Oil has edged back up within day but losses earlier in the session were too steep and the day on day performance remains at a loss in the final hours of US market trading.

End of Day Seasonal Prices for Thursday 7th December 2023

(The above prices were updated 09:30am, Friday 8th December 2023)

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