Crude oil prices were bullish on Friday, reaching 11-month highs, supported by signals of tightening global supply. Thanks in part to production cuts by OPEC+ members, Brent crude surged by 3% to $55.99 a barrel, while WTI oil closed 2.8% higher at $52.24 a barrel.

British gas extended gains towards two-year highs on Friday, on the back of colder weather and LNG supply concerns. As such, NBP gas for February delivery closed 4.5% higher at 60.69 p/therm. Contracts on the curve strengthened due to higher oil and carbon prices, with the front-year gas contract trading upwards by 0.6% at 44.02 p/therm.

Despite forecasts for colder weather, European power prices dropped on Friday amid higher renewables generation. As such, the German spot power decreased by 24.3% to 59.32 EUR/MWh and the French day-ahead power price closed 28.6% lower at 60.60 EUR/MWh.

Contracts on the curve edged higher, tracking bullish oil and carbon markets. The German Cal’22 power contract traded 0.6% higher at 51.16 EUR/MWh, while its French counterpart was 0.4% up at 52.24 EUR/MWh.

Carbon contracts gained ground on Friday, pushed by stronger energy prices. Meanwhile, investors await the resumption of auction supply. As a result, the CO2 EUA expiring in December 2021 gained 0.5% to settle at 34.92 EUR/tonne.