Trump, Trade Wars and OPEC – Prices Ease
Near-term contracts rise, whilst seasonal contracts experience losses. Commodity prices ease, EU ETS carbon drop amid heavy selling.
Last week we saw near-term power and gas contracts increase, while their seasonal counterparts moved lower. Larger price movements were seen further along the curve, thanks to falling commodity prices. Falling costs of EU Emissions Trading Scheme allowances also contributed to this downward pressure, due to a decrease in demand following Trump’s decision to impose steel and aluminium tariffs. Brent crude oil also fell, with production cuts set to be relaxed by OPEC. Outside of the wholesale market, British ministers have agreed to fund a new nuclear plant in Anglesey this month, which could be a fifth cheaper than Hinkley Point.