With gas, oil and carbon prices moving lower, there was nowhere else for U.K. power contracts to go but down last week. Milder temperature forecasts and a bearish oil market pressured futures contracts lower. Coal futures extended the year’s gains last week, climbing to the highest level since early January.
United Kingdom
Power prices fell with a resurgence of COVID-19 and extension of lockdown measures. LNG imports were up 20% week-on-week, rising to the highest level in over a year, while oil futures slumped last week, setting the tone for the wider energy market.
Europe
All energy pricing rose over the last week with CO2 experiencing a significant increase and all time high. Oil moved higher cautiously relative to the market.
Germany
US natural gas inventories decreased by 11 Bcf for the week ending March 12, compared with the five-year (2016–2020) average net withdrawal of 59 Bcf. Working gas stocks total 1,782 Bcf, which are 93 Bcf lower than the five-year average and 253 Bcf lower than last year at this time.
United States
Electricity, gas, CO2, and oil all rose in the past week. A positive sentiment towards global economic development, cold weather, and a recovering oil market supports pricing. Coal prices fell after significant increases over previous weeks.
Germany
Power contracts surged - led by carbon EUAs which rallied to record levels. Previously gas storage levels had fallen to a new 2-year low, but supply has risen and price rallied significantly. Carbon EUAs continue to dominate the U.K. and E.U. energy markets.
United Kingdom