Carbon market losses most significant that we have seen in the recent past
19 May 2021
UK NBP gave significant premium on TuesdayFollowing the recent significant bull run on gas markets the UK NBP gave significant premium on Tuesday, the second day in a row that markets had gone lower. the losses during yesterday’s market were significant and grew as the day progressed and the sell off intensified. Losses on the EUA carbon market were the most significant that we have seen in the recent past and with the new UK ETS market holding its first auction on Wednesday, there is no doubt the broader market had its eye on this. At settlement, the from month June contract was down by over 4.03p as this contract settled at 63.20p per therm while Winter 2021 was priced at 68.53p, 3.81 lower than the previous settlement.
GB power futures eased for the second session in a row as carbon and gas prices experienced a significant sell off. December 2021 EUA’s lost over 5% during the session and settled at €53.07 per tonne. With the first UK ETS auction scheduled for Wednesday, it is likely that UK players are selling their EUAs. The front month baseload contract shed £1.98, and Winter 2021 was down by £3.42/MWh at £79.33/MWh as lower input costs impacted. The day ahead baseload power fell by £2.63 to £81.00/MWh. Despite these falls the market remains elevated and coming days will tell if prices retrace to more normal levels.
GB power futures eased for the second session in a row
After moving higher for the last number of sessions, the crude oil market pulled away from pushing through the psychologically important point that is $70 a barrel. Brent crude traded over this point briefly during the day as the market peaked at €70.24. The additional premium was not sustained, and crude fell to a low of $68.63 at one point. The market seems reluctant to go beyond the $70 mark and not for the first time has it failed to breach this barrier. Many market participants are remaining cautious as some global economies return to normality while others still suffer under Covid outbreaks. With new U.S. inventory data due on Wednesday, we may see some new short-term direction established.
Crude oil fell to a low of $68.63 at one point yesterday