The recent volatility on the carbon market looks set to continue
22 March 2021
Prompt and near futures gas prices at the NBP eased significantlyPrompt and near futures gas prices at the NBP eased significantly again on Friday following Thursday’s slump in oil prices. A combination of high gas-fired power demand and restricted Norwegian supply-maintained pressure on the UK gas system throughout the day but the system remained marginally long throughout as LNG send-out ran at over 100MCM. The front month shed 1.41p and finished almost 10% lower week-on-week. Brent crude gained $1.25 on the day but was still down by almost $5.00 week-on-week while West Texas gained by a similar amount to settle at $61.42 a barrel.
GB baseload power futures fell for a fourth day in five on Friday as gas and carbon prices eased on the day. The ongoing volatility in the carbon market continues to impact power prices right along the curve. The strong gas supply situation as we near the end of the winter season is helping to maintain downward pressure on power prices, however. Day ahead power eased despite forecast weak wind generation again today while the week ahead contract for this week also eased. Wind generation is forecast to pick up from today and remain at higher levels for the rest of this week.
GB baseload power futures fell for a fourth day