Crude oil futures continued to slip on Tuesday as OPEC's decision to end a meeting on Monday without a decision on its production plans for 2021 and delay a meeting set for Tuesday until later in the week, weighed on prices. Hence, Brent crude lost 0.4% to settle at $47.42 a barrel. At the same time, U.S. WTI crude ended at $44.55 a barrel, posting a 1.7% drop day-on-day.

NBP spot edged 0.3% lower to end at 42.25 p/therm on Tuesday amid comfortable system due strong LNG deliveries and import flows from Norway despite colder temperatures. Along the forward curve, the gas price for year-ahead delivery declined by 0.7% to 38.00 p/therm, tracking lower oil and carbon prices.

European spot electricity prices rallied on Tuesday, as weaker renewable generation and colder temperatures lifted demand for power. Thus, the German day-ahead power jumped by 37.8% at 73.99 EUR/MWh, while the equivalent power contract in France closed at 74.29 EUR/MWh, notching a 33.7% surge on a daily basis.

Year-ahead power prices increased modestly despite bearish carbon and oil markets. The German Cal’21 power rose by 0.6% to 43.19 EUR/MWh, while the French Cal’21 contract added 0.1% to 46.64 EUR/MWh.

EUAs expiring in 2021 dropped by 0.9% to 29.07 EUR/t on Tuesday, curbing considerable gains reached  in November due to profit-taking. However, a cooler weather, an undersupplied system and wider market strength are  expected to bright further support to carbon prices.