In late March, energy markets in Europe exhibited notable fluctuations as geopolitical tensions influenced pricing dynamics. Brent oil futures on the ICE market opened the week at a low of $99.94 per barrel on March 23, but by March 27, they surged to a weekly high of $112.57 per barrel. This increase of 0.3% from the previous Friday marks the highest price level since July 2022. Initial downward pressure on oil prices was attributed to diplomatic engagements between the United States and Iran; however, escalating tensions in the Middle East subsequently reversed this trend.
Similarly, TTF gas futures demonstrated volatility during the same period. Prices peaked at €56.68 per megawatt-hour (MWh) on March 23 before dropping to a low of €52.82/MWh on March 25. The market stabilized thereafter, with prices closing at €54.18/MWh on March 27, reflecting an 8.6% decrease from the prior week. The early-week decline was driven by optimism surrounding potential peace negotiations, while later price increases were supported by ongoing geopolitical risks and diminished gas storage levels across Europe.
Meanwhile, CO2 emission allowance futures on the EEX market displayed a consistent upward trend throughout the week. The lowest price recorded was €69.26 per tonne on March 23, after which prices steadily climbed to reach a maximum of €71.69 per tonne by March 27, indicating a 5.9% increase compared to the previous Friday. This rise underscores the resilience of carbon pricing amid shifting energy and regulatory landscapes.
