Carbon Markets :
- UK Allowances (UKAs) were up after a brief period of weaker pricing.
- Liquidity is improving with increased UKAs trading on a forward basis.
- Both UKA and EUA prices to continue to rise into Q4 of 2021 on the back of rising power prices, liquidity constraints and supply-demand imbalances.
Gas and Power :
- Gas and power markets are still supported by strong market fundamentals.
- This week has seen some price consolidation.
- On the spot market power was stable to slightly lower on expected increased wind generation.
- We expect gas pricing to remain bullish as the fundamentals continue to be tight.
