EUA carbon contracts posted gains to bring all periods to new record highs
02 July 2021
Gas trading condition remained the same on ThursdayGas trading condition remained the same on Thursday as they were for the previous two sessions with the NBP market opening with significant strength and prices gapping higher as a result. The increase in gas prices is not limited to just the UK market as all the major hubs across Western Europe experience the same dynamic. The front month August contract traded at a high of 91.90p at one stage and then fell to a low of 88.00p, a swing of 3.90p. At settlement this contract was priced at a record high of 89.58p, up by 3.71p from the previous close. Gas contracts out to Winter 2021 posted gains of 3.78p on average while spot gas prices reached 91.95p per therm.
Fifth session in a row the power market added significant premiumGB baseload power futures contracts continued to track gas, coal and carbon markets higher as for the fifth session in a row the power market added significant premium. on the plus side there was some narrowing on spark spreads as the minimum supply margin improved but this did little to outweigh the movement in commodities. EUA carbon contracts posted gains of €1.40 to bring all periods to new record highs. The spot EUA contract is now priced at €57.92 per tonne. The day ahead baseload price for July continued to firm as a further £3.95 was added and this contract closed at £92.30/MWh.
The lackluster crude oil market of the last few days disappeared yesterday as prices for the Brent crude and West Texas intermediate contracts began to push higher. Recent data from the U.S. Energy Information Administration indicated a drop of 8.2 million barrels in inventories although gasoline stocks showed a build. The market is not a one way bet by any means as the incidence of the Delta variant of coronavirus grows across the globe and new restrictions and lockdowns are implemented. OPEC continue to warn of a potential glut by the end of this year and this is also providing a cap on prices
Brent crude contracts pushed higher