Crude oil prices continued to be buoyed by the news that a vaccine may soon be made available
11 November 2020
With gas demand expected to tumble today, the day ahead shed 1.60p yesterdayThe forecast for milder temperatures to remain across northern Europe coupled with high winds for the remainder of the week pressured gas prices at the NBP prompt on Tuesday. Temperatures in Britain and Ireland are to remain 2-3°C above normal until the weekend while higher wind generation should replace gas fired plants in the UK power stack. With gas demand expected to tumble today, the day ahead shed 1.60p yesterday while the weekend product fell by 2.00p. Natural gas futures settled mixed on the day with near months easing fractionally while stronger crude oil prices prevented losses on the longer curve contracts.
The power curve responded to declines in carbon EUAs yesterdayGeneration from GB wind farms is expected to increase from 5.3GW on Tuesday to above 10.0GW today and even higher for the end of the week. This coupled with milder temperatures for the next few days weighed on prompt power prices yesterday as the day ahead baseload product shed £4.50/MWh to settled at £42.25/MWh. Baseload futures eased for the most part on Tuesday as contracts declined by around 0.7% on average. The power curve responded to declines in carbon EUAs yesterday which fell by around 30 cent per tonne as the 2021 contract settled at €26.39.
Crude oil prices continued to be buoyed by the news that a vaccine may soon be made available while expectations for a reduction in U.S. crude stocks also provided support yesterday. Brent crude for January delivery peaked at $44.11 a barrel before closing at $43.61, up $1.21 a barrel. The U.S. benchmark, West Texas Intermediate, gained $1.07 over the day and closed at $41.36 a barrel. The markets are anticipating a reduction in U.S. crude stocks to be confirmed by the E.I.A. later today which may point to an increase in demand, however, with U.S. new covid-19 cases above 100,000 on each of the last seven days, states like California and Wisconsin are considering increasing restrictions.
The markets are anticipating a reduction in U.S. crude stocks to be confirmed by the E.I.A. later today