Crude oil prices continued to creep higher
17 December 2020
Increased optimism over a Brexit trade deal saw gas futures adjust lower to break a 6-day rallyThe UK gas system began the day in surplus yesterday but a surge in heating demand negated a drop in gas-fired generation demand as wind generation rose to 12GW. As demand increased the system fell short by the close of business but prompt gas prices retained early losses. Increased optimism over a Brexit trade deal saw gas futures adjust lower to break a 6-day rally which had seen prices increase by around 15% over the 6 day period. The front month shed 2.34p and Q1 21 was down 2.18p while the Calendar Year 21 fell by 1.52p.
GB baseload power futures moved lower in tandem with falling gas and carbon pricesGB baseload power futures moved lower in tandem with falling gas and carbon prices on Wednesday. The front month contract shed £0.95/MWh to back off the £60.00 mark while Q1 21 was down by £1.65/MWh. EU ETS unit prices fell by 40 cent to settle between €31.60 and €32.35 per tonne. The day ahead contract moved marginally lower as wind generation met forecast levels of 12GW yesterday. Wind availability is forecast to remain robust for the remainder of the week but is not expected to reach the levels seen on Wednesday.
Crude oil prices continued to creep higher despite ongoing demand destruction due to coronavirus restrictions. Brent crude gained 32 cents to settle at a 9-month high of $51.08 a barrel. US benchmark oil prices closed higher for a third straight session and at their highest price since late February, settling 20 cents higher day-on-day at $47.82 a barrel. The rise in the U.S. benchmark price came on the back of a 3-million-barrel decline in U.S. crude stocks last week. The 15 million barrel increase in stock levels for the previous week still left U.S. stocks at near record highs of over 500 million barrels.
Brent crude gained 32 cents to settle at a 9-month high