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Energy Markets

24.04.2025

Oil prices fell on Wednesday after reports suggested that OPEC+ may increase output sooner than expected. Brent crude dropped nearly 2% to $66.12 per barrel, while WTI crude fell by 2.2% to $62.27. However, the losses were cushioned by news that U.S. President Donald Trump might cut tariffs on Chinese imports, with reductions possibly ranging from 50% to 65%, according to a White House official quoted by the Wall Street Journal.

Natural gas prices in Britain also saw a decline, with spot prices dropping over 1% to 83.60 p/therm. This was largely due to a positive supply outlook and consistent flows from Norway. Additionally, the International Monetary Fund (IMF) revised global growth forecasts downward, sparking concerns about an economic slowdown. Consequently, the Winter 2025 gas contract slipped by 0.6% to about 92 p/therm.

Electricity prices across Europe showed mixed results. In Germany, spot prices fell sharply by more than 11% to 96.80 EUR/MWh, thanks to strong wind power output. Meanwhile, France experienced a spike of nearly 17% in spot prices, reaching 78.64 EUR/MWh. This increase was caused by a continued outage at the Gravelines 2 nuclear unit and an unexpected issue at the Dampierre 1 unit.

Forward electricity prices, however, moved upward, supported by positive signals in the financial markets and rising carbon prices. The German Cal-2026 contract rose by 1.7% to 82.19 EUR/MWh, and the French Cal-2026 contract increased by 1% to 60.26 EUR/MWh. European carbon allowances (EUAs) also rebounded, with the Dec-2025 contract surging nearly 4% to 66.90 EUR/tonne, lifted by overall market optimism and hopes for lower U.S.-China trade tensions.