Daily (05.06.2026): Oil prices dropped on Thursday amid hopes of de-escalation in the Middle East

Oil prices fell on Thursday as hopes for easing Middle East tensions and a potential reopening of the Strait of Hormuz improved market sentiment. As a result, Brent crude decreased by around 3% to $95.03 a barrel, while WTI crude decreased by over 3% to $93.04 per barrel.





The NBP spot contract advanced by 1% to 119.60 p/therm on Thursday on stronger demand and firmer market sentiment.

Further along the curve, the Winter 2026 delivery contract gained merely 0.3% to 120.21 p/therm amid expectations that tensions in the Middle East will ease.

European spot electricity prices rocketed on Thursday. The German day-ahead contract surged by over 60% to 100.36 EUR/MWh, supported by weaker wind generation. Meanwhile, the French equivalent contract soared from 8 EUR/MWh to 32.52 EUR/MWh backed by warmer weather and stronger demand.

Further along the curve, power futures moved lower, tracking bearish carbon prices. The German 2027 delivery contract traded 1.2% lower at 94.34 EUR/MWh, while the French equivalent contract decreased around 2% to 56.34 EUR/MWh.

European carbon prices declined on Thursday, amid long-position liquidation and reports that 400 million allowances could fund a new Industrial Decarbonisation Bank. Consequently, the EUAs expiring in Dec-2026 fell by 2% to 77.07 EUR/tonne.