West Texas Intermediate, settled above $50.00
07 January 2021
Slight system deficit during the day saw prompt gas prices increase marginallyAs cold weather continued to prevail over Britain and Ireland, demand on the UK gas system increased to 386MCM yesterday. The system slipped into deficit mid-morning and only recovered balance at close of business. Tuesday’s sharp downward correction on the UK gas market was followed by more modest losses on Wednesday. The front month shed another penny and March was down by 0.89p but contracts for the remainder of the year were down by an average of just 0.40p. The slight system deficit during the day saw prompt gas prices increase marginally with gains averaging 0.30p across the board
Carbon prices rallied with EU ETS unit prices gaining 67 centGB baseload power futures eased a little further on Wednesday, but movement was marginal compared to the previous day’s slump. The front month February contract fell by just £0.20/MWh and Summer 21 was down by £0.22/MWh. Carbon prices rallied with EU ETS unit prices gaining 67 cent to finish above €33.50 per tonne. The day ahead baseload power price fell back below £100/MWh as the National Grid lifted the supply margin notice with demand easing due to the new lockdown measures across the UK. Margins are expected to remain tight as wind generation is forecast to fall further today.
Crude oil continued to strengthen in global trading yesterday as Saudi Arabia and Russia agreed to maintain production limits for the month of February. In fact, Saudi has indicated it will cut production by 1 million barrels per day next month as fears of further demand destruction prevail with extended lockdowns in many major oil consuming economies. Brent crude gained 70 cents to settle at $54.30 on the news. U.S. inventory data released by the Energy Information Administration yesterday showed a big draw on crude stocks in the U.S. as refineries ramp up production following the holiday period. The U.S. benchmark, West Texas Intermediate, settled above $50.00 for the first time in 10 months.
Crude oil continued to strengthen in global trading yesterday