Tuesday's trading saw a decline in oil prices following President Trump's decision to postpone a planned attack on Iran, although the ongoing tensions between the US and Tehran provided some support for the market. As a result, Brent crude experienced a modest drop, falling 0.7% to settle at $111.28 per barrel, while WTI crude fell by 4% to $104.15 per barrel.
A mix of reduced Norwegian exports and cargo rerouting towards Asia pushed the NBP spot contract up by 6.4% to 132 p/therm on Tuesday.
Positive sentiment carried over to the Winter 2026 delivery contract, which increased by 2.3% to 126.04 p/therm. The price movements were supported by ongoing geopolitical uncertainties and the likelihood of tighter global supply if Asia continues to absorb flexible LNG volumes.
European spot electricity prices varied on Tuesday. Improved wind generation forecasts led to a 15% decrease in the German day-ahead contract, bringing it down to 108.90 EUR/MWh. In contrast, the French equivalent contract rose by 2.2% to 46.04 EUR/MWh, driven by a reduction in domestic nuclear availability that tightened prompt supplies.
Further along the curve, prices rose in line with a rally in the natural gas market. The German 2027 delivery contract increased by 0.3% to 93.28 EUR/MWh, while the French equivalent contract gained 0.6% to 55.74 EUR/MWh.
Anticipation of policy changes in July kept European carbon markets slightly lower but stable near key psychological levels on Tuesday. Traders are concentrating on expected proposals from the European Commission aimed at easing supply pressures post-2030, which would help relieve financial burdens on local manufacturers. Consequently, EUAs expiring in Dec-2026 decreased by 0.8% to 74.97 EUR/tonne.
May 20, 2026