During the first week of May 2025, Brent oil futures experienced a downward trend in the ICE market. On Monday, April 28, the settlement price for the Front Month contract reached its weekly peak at $65.86 per barrel. However, by Friday, May 2, the price dropped to its weekly low of $61.29 per barrel, representing an 8.3% decrease from the previous Friday and marking the lowest settlement price since March 24, 2021.
The decline in Brent oil prices was driven by expectations of increased production from OPEC+ and concerns about global demand. Despite potential improvements in trade relations between China and the United States, these factors contributed to a drop in prices, with the settlement price on May 2 being the lowest in four years.
In the TTF gas futures market, settlement prices for the Front Month contract remained under €33 per megawatt-hour (MWh) for most of the first week of May. On Tuesday, April 29, the futures hit their weekly minimum settlement price of €32.11 per MWh, the lowest since July 24, 2024. However, the prices began to rise towards the end of the week, with a 2.9% increase on Friday, May 2, bringing the settlement price to €33.08 per MWh, which was 2.0% higher than the previous Friday.
Stable supply and warm temperatures helped keep TTF gas futures below €33 per MWh for the majority of the week. However, forecasts of cooler weather and expectations of improved trade relations between China and the U.S. contributed to the price increase at the end of the week.
As for CO2 emission allowance futures in the EEX market, the December 2025 reference contract reached its weekly minimum settlement price of €64.85 per ton on Tuesday, April 29. The remaining sessions of the week saw prices above €65 per ton, with the highest settlement price of the week occurring on Friday, May 2, at €68.76 per ton. This was a 3.5% increase from the previous Friday and the highest price since April 2, 2025.
In summary, while oil and gas futures saw a decline in the first week of May, CO2 emission allowance prices increased, reflecting the complexities of the global energy market amid supply forecasts and shifting geopolitical dynamics, AleaSoft reports.
