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Energy Markets
02.04.2026
Energy markets moved lower on Wednesday, driven by easing geopolitical concerns. Comments from Donald Trump suggesting a potential wind-down of US military involvement in Iran helped calm markets, with expectations shifting towards more limited disruption to global supply. As a result, oil prices fell sharply, with Brent crude down 14.5% to $101.16 per barrel and WTI easing to $100.12.
Gas markets followed a similar trend. UK NBP spot prices dropped by 4.6% to 120.21 p/therm as sentiment improved and supply remained strong. Increased pipeline flows from Norway and Algeria helped ease concerns, while on the forward curve, the Winter 2026 contract fell by 6.6% to 121.10 p/therm. Storage levels across Europe, currently around 28%, are also providing some reassurance as the injection season begins.
European electricity prices also moved lower, supported by stronger generation. Increased wind output in Germany and higher nuclear generation in France reduced pressure on day-ahead prices, with German power falling by 21% and French prices down by 18%. Forward power contracts followed the direction of gas markets, easing slightly across both regions.
In contrast, carbon markets moved higher. European carbon prices reached a seven-week high as policy signals from the European Commission pointed towards tighter supply in the near term. The December 2026 contract rose by 3% to €74.64 per tonne, with further clarity expected in the coming months.