UK gas prices gained for a second consecutive day as a result of sterling weakening further on Friday.
14 December 2020
Prompt gas prices were little changed as the UK gas system remained well-supplied on FridayWith Brexit negotiations on a knife edge and little sign of a break-through, sterling weakened further on Friday. UK gas prices gained for a second consecutive day as a result, with the Calendar Year 2021 contract topping 40.00p for the first time in 11 months. The Q1 2021 contract gained 1.33p on the day, up almost 10% week-on-week. Seasonal contracts for Summer 2021 and beyond gained an average of 0.75p. Prompt gas prices were little changed as the UK gas system remained well-supplied on Friday
Carbon prices eased on the dayGB baseload futures recorded further gains on Friday leaving prices between £1.00 and £3.55 higher week-on-week. The January contract gained just £0.50 but the full Q1 21 contract was up by £1.00/MWh. Carbon prices eased on the day, but EU ETS unit prices remained between €30.50 and €31.00 per tonne. On the prompt market, day ahead and week ahead contracts moved lower on forecast milder weather and higher wind generation levels. The expected lower demand will see wind take a greater slice of the power stack with less reliance on gas-fired plant
Crude oil failed to sustain the recent rally which saw Brent settle above $50.00 a barrel on Thursday. The global benchmark slipped by 28 cents to settle at $49.97 on Friday, just 72 cents higher week-on-week. The recent rally, which saw prices gain almost $10.00 since the beginning of Q4, stalled as the market gauges demand destruction due to Covid-19 lockdowns against possible demand revival as vaccination is rolled out. The U.S. benchmark, West Texas Intermediate, also saw a slight decline on Friday as fresh lockdown measures came into effect in populous areas like California and New York city.
Crude oil failed to sustain the recent rally which saw Brent settle above $50.00 a barrel on Thursday