Crude oil prices finished higher week-on-week
31 August 2020
An unplanned outage, pushed prompt gas prices higherThe programme of planned maintenance on the Norwegian system is due to reduce deliveries by 50MCM throughout the month of September. Despite a comfortable system balance on Friday, an unplanned outage, which reduced Norwegian supply by a further 80MCM over the weekend, pushed prompt gas prices higher. The day ahead contract gained 1.45p to close at a 7-month high of 26.75p. On the futures market, the new front month contract for October gained 2.27p to settle at 28.95p, a 22% rise over the week. while seasonal contracts generally finished over 10% higher week-on-week.
Wind variability continued to cause wild swings in the GB day ahead priceThursday’s easing on the GB power futures market proved temporary as contracts recorded strong gains across the board on Friday. The market has been bolstered by the recent rise in carbon prices as EU ETS unit prices push €30.00 per tonne. The September contract gained £2.20/MWh to expire at £42.80, up 17% week-on-week. Wind variability continued to cause wild swings in the GB day ahead price which have varied by as much as 25% day-on-day over the past week. Forecast lower wind availability this week saw the week ahead price gain £1.50/MWh.
As Hurricane Laura cleared the Gulf Coast without inflicting major infrastructural damage, crude oil prices eased fractionally on Friday. The storm moved inland and was downgraded but analysts say that this was only the first of what is expected to be a particularly active hurricane season. The premium built up prior to the storm on Monday and Tuesday of last week was partly retained with crude finishing 70 cents higher week-on-week. Brent crude settled at $45.05 while West Texas Intermediate settled at $42.97 a barrel on Friday. EU ETS unit prices continue to rise and are pushing €30.00 per tonne.
EU ETS unit prices continue to rise