UK Energy Pricing Trends - 5 Feb. 2021

UK Power Pricing Trends | 5 February 2021

Moderate temperatures and stronger gas supplies into Europe weighed on near-end U.K. power contracts last week. However, a surge in carbon EUAs saw seasonal power contracts push higher throughout the week. Strong auction demand and an increase in speculative positions saw the benchmark Dec-21 EUA rally almost 16% week-on-week. Higher carbon prices lifted seasonal gas futures too, lending additional support for longer-dated power contracts.

UK Natural Gas Pricing Trends | 5 February 2021

Short-end U.K. gas contracts were pressured lower last week by forecasts for milder temperatures and, on average, stronger output from renewable generation sites. Additionally, a stronger LNG import schedule provided additional price pressure, with the U.K. expecting 4 tankers to arrive at the Isle of Grain terminal before mid-month. Conversely, longer-dated seasonal contracts pushed higher, chiefly on the back of surging carbon EUA prices.

UK Energy Complex | 5 February 2021

Poland saw its first EUA auction of the year last week, and prices settled at a considerable premium to the secondary market as the nation’s coal-heavy power generators rushed to hedge their emissions costs. The Polish auction contributed to the week’s overwhelmingly bullish narrative around carbon, driven primarily by a renewed appetite of institutional investors to bet on bullish price movements in the months to come. Oil also pushed higher, nearing $60/barrel, as the vaccine rollout promoted a more promising demand outlook, while global supplies continued to tighten.

The information above is an excerpt from the applicable report referenced above. For a full and complete copy of this report please complete the form below, sign up for our newsletters or schedule a virtual meeting at your convenience.

Charlie Strange

Get The Full Report Delivered To Your Inbox

Fill out the form below and we'll send you the full report.

1 Your Details

2 Company Details

By submitting this form you agree to let NUS follow up with you related to your inquiry. Your information will be used for these purposes alone, we never buy, sell, or trade your personal data. For more information, please see our Privacy Information.