Unseasonably cold weather, a bullish gas market narrative and surging carbon prices gripped the U.K. power market last week. The decline in temperatures and the subsequent 20% week-on-week climb in gas demand for heating continued to stall gas storage reinjection. The cost of carbon for European emitters climbed 15%.
United Kingdom
The European energy market continued to trade in contradiction to the area’s economic performance. Despite an improvement in Europe’s vaccination effort, the rectification came too late to reverse the economic damage inflicted by the tighter travel and trade restrictions experienced.
Europe
Bullish expectations about oil demand this summer pushed the oil market up. With gas price increases, coal as competing fuel increases too. Near-curve market, after easing in beginning of week, grew significantly WoW. Along with higher oil, the price in the far-curve market grew as well.
Czech Republic & Slovak
Electricity remains stable due to falling prices of coal and gas. CO2 reaches new highs after positive sentiment regarding the EU's climate protection law. Oil prices fell in part due to an unexpected increase in US inventories. Coal prices are affected as India and Japan are massively impacted by corona cases.
Germany
US natural gas inventories increased by 15 Bcf for the week ending April 23, compared with the five-year (2016–2020) average net injection of 67 Bcf and the market consensus of 13 Bcf. Heading into the expiration of the May 2021 contract we saw an impressive $0.31/dth climb to the close at $2.95/dth
United States
A week-on-week lift in U.K. average temperatures and wind generation saw an erosion in spot prices. A bullish energy market narrative was supported by promising, real-time economic data, such as restaurant bookings, job postings and road traffic use.
United Kingdom