UK Energy Pricing Trends - 9 Apr. 2021

UK Power Pricing Trends | 9 April 2021

Spot power prices rallied substantially last week as below seasonal-average temperatures and low renewable generation underpinned a bullish, short-run market dynamic. Carbon EUAs rose to a new record price in midweek and, despite paring some gains into Friday, continued to support forward power contracts. Sentiment, bolstered by the imminent easing of travel and trade restriction, remained bullish and continued to support short-end power contracts disproportionately – pulling the forward curve deeper into backwardation.

UK Natural Gas Pricing Trends | 9 April 2021

Average temperatures across the U.K. fell by half Friday-to-Friday and dropping to as low as 3°C in midweek. Consequently, average daily heating demand rose 30% week-on-week, lending substantial support to spot prices. A steady rise in Norwegian gas flows into the U.K. throughout the week did help temper spot market gains, however. On the forward curve, the support to gas pricing provided by the bullish, intraday dynamic was nullified by a strong and still-expanding LNG supply outlook – a further 13 LNG shipments were expected to dock at U.K. terminals by month-end.

UK Energy Complex | 9 April 2021

The EU ETS’ allowance surplus increased 14.2% to 1.39bn as emissions fell sharply last year. Despite the apparent supply glut, carbon EUAs continued their rise to notch a record high €44.25/tonne on Tuesday – supported by strong speculative interest and dip-buying from emitters ahead the April 30th compliance deadline. Meanwhile, oil benchmarks retreated as the market weighed a slew of positive U.S. economic data against OPEC and its allies’ gradual tapering of existing output curbs, in addition to the prospect of additional supply from Iran.

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.