Carbon prices hit new record highs of over €35.00 per tonne
11 January 2021
Day ahead gas also saw some stepped movement over the weekThe highly volatile trading pattern over the 5 days saw losses and gains on the front month contract of over 5.00p last week and a week-on-week increase 4.29p. Sub-zero temperatures and high gas-fired power generation demand stretched the UK gas system balance at times through the week. Day ahead gas also saw some stepped movement over the week, gaining 4.40p to finish above the 60.00p mark for the first time in almost 2 years. Movement on seasonal contracts was less dramatic with the front summer and Winter 21 contracts gaining just over penny week-on-week.
GB power futures on the near curve moved higher in line with rising gas and carbon prices on FridayGB power futures on the near curve moved higher in line with rising gas and carbon prices on Friday. The front month gained £2.60/MWh to settle just above £70.00/MWh. Summer 21 was up marginally while seasonal contracts further out the curve were unchanged or down marginally. Carbon prices hit new record highs of over €35.00 per tonne. Supply margins remained tight with temperatures around zero and weak wind generation levels which continued to support prompt power prices on Friday. Forecast lower demand and increased wind generation levels for this week saw the day ahead contract price ease slightly.
Crude oil prices recorded steady gains throughout the week and Brent crude finished above $55.00 for the first time in over 10 months. OPEC’s decision to maintain current production quotas, along with the Saudi Arabia’s unilateral plan to cut output, and a big weekly decline in US oil inventories all helped support oil prices. The U.S. crude oil benchmark, West Texas Intermediate, gained $1.41 to settle at $52.24 a barrel, which was also a 10-month high. The market will be watching the next inventory report from the U.S. to determine if the previous week’s steep decline in stocks will be repeated or whether the dip was down to holiday driving demand.
Brent crude finished above $55.00 for the first time in over 10 months