Daily (04.12.2020): Oil prices hit their highest levels since March after OPEC agreed to gradually increase production

04/12/2020 10:13 Daily


Crude oil futures jumped to their highest levels since March after OPEC+ agreed to gradually return to the market 2 million barrels per day expected early next year, starting with 500,000 barrels per day in January, at the end of four days tough negotiations. The deal is a compromise meant to allow its members to benefit from rising prices without flooding the market. Hence, Brent crude increased by 1% to settle at $48.71 a barrel. Meanwhile, U.S. WTI crude rose by 0.8% to end at $45.28 a barrel.

British near-term gas prices dropped on Thursday amid a long system, shrugging off forecasts of further cold weather next week. As result, NBP spot shed by 3% to 42.00 p/therm. Along the forward curve, the gas price for year-ahead delivery tumbled by 4.9% to 36.36 p/therm, tracking bearish carbon markets.

European spot electricity prices declined sharply on Thursday amid an improvement in renewable generation forecast. Consequently, the German day-ahead power price shrunk by 13% to 41.78 EUR/MWh, while the French equivalent contract settled at 51.15 EUR/MWh, posting a 3.8% fall day-on-day.

On the curve, year-ahead power contracts lost ground, tracking bearish carbon prices. Thus, the German Cal’21 power slipped by 0.8% to 42.57 EUR/MWh, while the similar contract in France ended at 46.10 EUR/MWh, notching a 0.2% loss on a daily basis.

EUAs expiring in 2021 declined by 1.9% to 29.20 EUR/tonne on Thursday amid a weaker energy complex due to a late oil drop and wider uncertainties over Brexit.

UK's hydrogen future could involve both blue and green pathways

04/03/2021 08:45:00

The UK's hydrogen future could involve a mix of both blue and green production pathways, but it needs to get started or risk falling behind, panelists said March 3.


China ‘installed half of new global offshore wind capacity in 2020’

04/03/2021 08:43:00

China accounted for half of all new global offshore wind capacity in 2020.


UK to set up green infrastructure bank

04/03/2021 08:15:00

The bank will be able to deploy £12bn of equity and debt capital and issue up to £10bn of guarantees. It should support up to £40bn of total investment, Sunak said.