Following a 3-day run of gains, Brent crude, threaten the $70.00 a barrel mark
09 March 2021
Early gains on the UK gas futures market were reversed over the course of the trading dayAs oil prices turned lower following a bullish start on Monday, early gains on the UK gas futures market were reversed over the course of the trading day. The front month shed 0.85p while the full Summer 21 contract was down by 0.79p. On the prompt market, spot and day ahead prices were little changed at close of business despite an early surge as the system ran a 20MCM deficit in the morning. Increased LNG send-out from the Isle of Grain, and Norwegian deliveries to St. Fergus, all but balanced the system by the close. The week ahead fell by 2.20p as wind generation is forecast higher, easing gas demand for power generation.
Baseload power futures turned lower on Monday as gas and oil prices eased, and carbon prices recorded only marginal gains on the day. The Q2 and full summer contracts shed £0.60/MWh to settle at £50.85/MWh and £50.80/MWh respectively. EU carbon allowances gained fractionally to finish in a range between €39.00 and €40.00 per tonne. A modest pick-up in wind generation and stronger supply margins saw the day ahead price fall to a 10-day low on Monday. Wind generation crept above 4GW on the day and are forecast to increase further today.
Stronger supply margins saw the day ahead price fall to a 10-day low on Monday