Crude oil contracts have recovered some of yesterday’s losses
14 May 2021
Prices have been elevated and increasing for the last number of sessionsThe UK NBP market opening considerably lower on Thursday with gas prices trading between 2.00p and 3.00p lower than the previous night’s close. Prices have been elevated and increasing for the last number of session and Thursday’s softer market was a welcome development although contracts did firm towards the close. There is no doubt that a general improvement in temperature plus the lower crude oil price were the key drivers on the day. In fact, forecast gas demand was coming in at just 202MCM and the system remained in balance throughout the day although prompt prices pushed higher nonetheless which prevented the forward curve from posting significant losses at the close.
EUA carbon prices moved lower for the first time in more than 6 sessions and all contracts moved off the record highs set in the previous session. It is likely that the market is responding to the lower crude oil price and the impending first auction of the new UK ETS next week. The lower carbon cost combined with less expensive gas and crude oil to drive a modest amount of premium from longer term baseload contracts. At the front of the power curve contracts remain elevated and with the prompt firming by £1.00 to £84.90/MWh, more price pressure was added to near term contracts.
EUA carbon prices moved lower for the first time in more than 6 sessions