Daily (13.08.2019): European carbon prices slumped by over 5% on Monday amid a weaker auction

13/08/2019 10:05 Daily

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Oil prices remained bullish on Monday, on expectations for deeper cuts of global oil supplies that might counterbalance the slowing growth of global crude demand driven by the U.S.-China trade dispute. Brent crude traded 0.1% up at $58.57 a barrel. At the same time, the ongoing tensions between the U.S. and Iran, along with a weakening dollar, pushed the WTI futures 0.8% higher at $54.93 a barrel.

Firmer supply from Norway and stronger output from UK Continental Shelf weighed on UK forward gas prices on Monday. The contract for delivery in Winter 2019 settled 2.2% lower at 49.28 p/therm. Meanwhile, short-term forecasts for reduced wind generation raised gas-for-power demand, with NBP spot price climbing by 1.4% to 29.60 p/therm.

 

The European day-ahead power prices skyrocketed on Monday, in a correction move after the Sunday’s plunge into negative territory due to strong wind output. Moreover, rising temperatures in the region boosted demand for cooling. The price for the German spot power contract soared by 206.8% to 38.04 EUR/MWh. The price for the equivalent French contract spiked by 139.8% to 33.65 EUR/MWh, on more support from an outage at Chinon 1 reactor, which was provisionally extended to August 14.

 

Along the curve, electricity prices extended losses, tracking weaker gas and coal contracts, as well as the fall in carbon prices. The German power contract for delivery in 2020 ended 2.1% lower at 49.30 EUR/MWh, while the price for the equivalent French contract dropped by 1.7% to 51.55 EUR/MWh.

 

EU carbon prices plunged to a one-month low amid a bearish auction on Monday, while cheaper fuel contracts kept prices under pressure. As a result, the price for the 2019-expiry contract slumped by 5.1% to 26.70 EUR/tonne.

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The move will save UK consumers money on their bills over the 45-year cost period.

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Daily (25.05.2020): Oil futures settled lower on Friday amid U.S.-China turbulence, but posted a weekly gain

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Crude oil futures lost ground on Friday amid worries about economic recovery in China and rising tensions between Beijing and Washington.

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Daily (22.05.2020): NBP spot down 19% due to oversupply and weak demand

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Crude oil futures continued to climb in an optimistic climate on Thursday, to hit their highest settlement since March amid lower U.S. inventories and hopes for a recovery in demand for black gold. Hence, Brent crude for July delivery rose by 31 cents, or 0.9%, to settle at $36.06 per . At the same time, U.S. WTI crude gained 43 cents, or 1.3%, to end at $33.92 per barrel.

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