WTI gained for the sixth consecutive session
13 January 2021
The front month February contract opened up with penny increaseOnce again yesterday the UK NBP market displayed remarkable volatility with prices swinging by significant levels throughout the session. The front month February contract opened up with penny increase which was modest enough given what happened in the remainder of the session. This contract traded at a high of 83.50p and a low point of 67.00p, a 16.50p per therm swing over the course of the session. At settlement this February contract settled at 76.60p, up by 10.60p from the previous session. The same factors continue to influence the market with high demand for LNG in Asia causing concern regarding European supplies this Winter.
The day ahead baseload power contract displayed considerable volatilityThe GB baseload power marker surged higher on Tuesday as significant increases in UK NBP gas prices fed into the curve. The power market was also negatively impacted by another electricity margin notice issued by National Grid. This notice suggested a shortfall of 1.2GW from the ideal safety cushion. Much of the pressure was on the front of the curve where February spiked by £11.40 to closes at £85.75/MWh. Likewise, March added £7.90to finish at £72.25/MWh. The day ahead baseload power contract displayed considerable volatility with prices increasing by some £37.60/MWh.
The Brent crude contract for March delivery recovered all of the losses from the previous session and added further premium as the oil market tracked some positive signs in U.S. equities. Likewise, the West Texas Intermediate contract posted a gain for the sixth consecutive session and moved closer to a 11-month high. It is apparent that the market is looking beyond the short term and anticipating a more positive economic outlook as the various Covid 19 vaccines are rolled out across the Globe. At market settlement the Brent crude contract closed at $56.60 a barrel, up by 94 cents. WTI reached $53.21 having gained 1.3% over the session.
Brent crude contract for March delivery recovered all of the losses from the previous session