Breezy does it: Wind output pushes down power prices while diplomacy causes oil and gas to falter
Power prices have plummeted as stormy weather across Europe has boosted output from wind turbines to near-record highs.
Storm Eunice has whipped up 90 mph gusts across the UK, causing domestic day-ahead prices to tumble 11 per cent to £140 per megawatt-hour.
Meanwhile, German prices fell by more than two-thirds to their lowest this year, while output from wind farms in the country is set to double by tomorrow morning.
Millions of Brits have been told to stay at home as one of the worst storms in decades batters Britain.
However, the jump in wind generation will offer some relief to strained energy markets, which have relied heavily on coal and gas amid a supply crunch.
Natural gas prices have also declined amid increased expectations of fresh talks between the US and Russia over Ukraine – reducing worries of supply shortages.
Dutch TTF Futures prices are down 4.7 per cent today, while the UK benchmark was down 4.3 per cent.
Russian Foreign Minister Sergei Lavrov has agreed to hold talks with US Secretary of State Antony Blinken next week, after skirmishes on the border reignited tensions.
The continent has also topped up its LNG capacity over recent days thanks to US imports.
Sustained rallies across both major oil benchmarks also appear to have run out of steam, with prices dropping from seven-year highs this week back to around $90 per barrel.
This follows increasing expectations of a new deal between the US and Iran, and an influx of supplies in a tightening market.