Sep 3, 2025
Daily (03.09.2025): Crude oil prices soared on Tuesday driven by fresh US sanctions on Iranian oil
Crude oil prices advanced on Tuesday amid U.S. imposed sanctions targeting Iran’s oil revenue stream and mounting geopolitical tensions, as Ukrainian drone attacks knocked out around 17% of Russia’s refining capacity (1.1 mb/d). Meanwhile, investors will monitor a meeting of eight OPEC+ members on September 7. Hence, Brent crude rose by 1.5% to $69.14 per barrel, while WTI crude added 1.4% to $65.59 per barrel.
Softer gas-for-power demand and stable fundamentals weighed on British near-term gas prices on Tuesday. As a result, the NBP spot price slipped by 0.5% to 78.85 p/therm, despite reduced Norwegian flows from maintenance.
Looking further ahead, the Winter 2025 delivery contract edged 0.3% lower at 84.95 p/therm, amid ongoing Russian Arctic 2 LNG sanctioned shipments and expectations of stronger non-Russian flows, with the TAP pipeline set to boost annual capacity to 20 bcm by 2027.
European spot electricity prices slumped on Tuesday, with the German day-ahead power price tumbling by 46% to 65.67 EUR/MWh as forecasts indicated a surge in wind power generation. Similarly, the French equivalent plunged by 34% to 18.49 EUR/MWh, despite a strike by power workers in France that cut about 1 GW of the country’s nuclear power capacity at three reactors.
On the forward curve, power contracts decreased amid sliding energy markets. The German 2026 delivery contract fell by 0.7% to 85.10 EUR/MWh, while the French equivalent edged 0.5% lower at 59.87 EUR/MWh.
European carbon prices eased back from Monday highs amid bearish macro signals, weaker energy complex and profit-taking, with the EUAs expiring in Dec-2025 down 0.5% at 73.61 EUR/tonne on Tuesday.
Softer gas-for-power demand and stable fundamentals weighed on British near-term gas prices on Tuesday. As a result, the NBP spot price slipped by 0.5% to 78.85 p/therm, despite reduced Norwegian flows from maintenance.
Looking further ahead, the Winter 2025 delivery contract edged 0.3% lower at 84.95 p/therm, amid ongoing Russian Arctic 2 LNG sanctioned shipments and expectations of stronger non-Russian flows, with the TAP pipeline set to boost annual capacity to 20 bcm by 2027.
European spot electricity prices slumped on Tuesday, with the German day-ahead power price tumbling by 46% to 65.67 EUR/MWh as forecasts indicated a surge in wind power generation. Similarly, the French equivalent plunged by 34% to 18.49 EUR/MWh, despite a strike by power workers in France that cut about 1 GW of the country’s nuclear power capacity at three reactors.
On the forward curve, power contracts decreased amid sliding energy markets. The German 2026 delivery contract fell by 0.7% to 85.10 EUR/MWh, while the French equivalent edged 0.5% lower at 59.87 EUR/MWh.
European carbon prices eased back from Monday highs amid bearish macro signals, weaker energy complex and profit-taking, with the EUAs expiring in Dec-2025 down 0.5% at 73.61 EUR/tonne on Tuesday.