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Energy Markets
04.07.2025
Oil prices fell on Thursday as worries about new U.S. tariffs raised concerns over energy demand, while expectations of increased production added pressure. A brief boost from a U.S.-Vietnam trade deal faded due to unresolved talks with the EU and Japan. As a result, Brent crude dropped 0.5% to $68.80 per barrel, and WTI crude declined 0.7% to $67.
In the UK, natural gas prices fell as supply outpaced a drop in demand. Spot prices at the National Balancing Point (NBP) dropped 0.8% to 78 pence per therm. Winter 2025 gas contracts also slipped 0.3% to 92.30 p/therm, pressured by new EU rules requiring gas storage sites to be nearly full earlier in the season.
Spot electricity prices across Europe continued to fall. In Germany, prices dropped 8% to 79.62 EUR/MWh due to higher solar power output. In France, prices fell 11% to 72.52 EUR/MWh as peak demand eased. However, forward contracts rose slightly, with Germany's 2026 contract up 0.2% and France's up 0.7%.
Carbon prices in Europe saw modest gains, supported by cooling weather that increased reliance on fossil fuels. EU carbon allowances for December 2025 rose 0.2% to 72.06 EUR per tonne. The uptick suggests that market expectations for emissions demand remain firm despite seasonal shifts.