Record day-on-day gains in carbon EUAs
13 May 2021
Gas futures recorded average gains of over a pennyTemperatures fell back below seasonal levels on Wednesday and with wind generation falling below 2GW, demand on the UK gas system rose to 195MCM. Solid deliveries levels of 200MCM maintained a supply surplus throughout the trading day but the recent bullishness on the prompt gas market continued with contracts gaining over 1.00p on average. Gas futures also recorded average gains of over a penny along the curve. The Winter 21 contract is now trading above 70.00p and holding a premium of over 20% on Winter 22.
Record day-on-day gains in carbon EUAs pushed base load futures higher yesterday as power contracts recorded sharp gains for the third straight day. The front month added £1.60/MWh to close at £75.00/MWh. Prompt prices also picked up with wind generation expected to decline further today and tomorrow. The day ahead product settled £3.67 up at £84.00/MWh. Carbon EUAs settled above €55.00 per tonne on Wednesday after the latest auction was flooded by investor activity. Contracts out to 2023 climbed over 4.3% or around €2.30 per tonne to post the largest day-on-day since the market was established.
Carbon EUAs settled above €55.00 per tonne
With the ongoing shut-down of the Colonial Pipeline, fuel shortages began to emerge in some States and U.S. crude gained 80 cents to settle at $66.08 a barrel while gasoline prices hit 3-year highs in North-Eastern States. Brent settled 77 cents higher to close at $69.32 a barrel yesterday on optimistic forecasts from OPEC for demand growth in the second half of the year. Crude prices were also supported by weekly inventory data from the States showing a decline in crude stocks. Carbon prices recorded the biggest day-on-day rise since the market was established as EUA unit prices move above the €55.00 per tonne mark.
Fuel shortages began to emerge in some States