Carbon prices closed at new record highs
21 April 2021
NBP futures opened the session with modest lossesHaving opened long by up to 25MCM on Tuesday the UK gas system tightened over the day and was running slightly short by the end of the trading day. Demand increased to 238MCM over the session to cover for the poor showing of wind generation in the power stack. Prompt prices opened softer, and all products retained losses to the close despite forecasts of cooler temperatures running until early May. The within day contract recorded the greatest loss of the day at 1.90p, closing at 54.75p, while the remainder of the prompt declined by up to a penny. NBP futures opened the session with modest losses but there was never enough traction and the declines were reversed by the end of the day leaving contracts an average of 0.25p higher.
Baseload power prices continued to move higher on Tuesday with gains recorded right across the curve. The front months gained an average of £0.65/MWh, while increases to longer curve contracts averaged around half of this. Carbon prices closed at new record highs on the day with the 2021 contract adding 54 cent per tonne to settle at €44.89 per tonne. The day ahead contract eased back off recent highs to settle at £64.25/MWh yesterday. Wind generation continues to perform poorly in the UK power stack, although yesterday it increased slightly to 1.5GW which was only 4.2% of demand requirements yesterday.
Baseload power prices continued to move higher on Tuesday