Crude oil prices retreated on Wednesday, feeling the effects of the coronavirus pandemic on global demand. Consequently, Brent oil decreased by 0.9% to close at $56.06 a barrel, while WTI crude edged 0.6% lower at $52.91 a barrel.

British near-term gas prices were bearish yesterday, after reaching two-year highs, weighed by forecasts for milder weather. Despite LNG price and supply concerns, NBP gas for February delivery tumbled by 15.9% to 65.16 p/therm. The front-year gas contract traded 4.3% lower at 43.30 p/therm, mainly due to weaker oil and carbon prices.

On Wednesday, a severe drop in wind generation helped push the German spot power price upwards by 66.2% to 70.58 EUR/MWh. By contrast, the French spot power price closed almost unchanged, only 0.7% lower at 73.33 EUR/MWh.

Electricity contracts on the curve decreased yesterday, following a drop in carbon prices. Germany’s benchmark front-year power contract fell by 2.4%, from a 17-month high, to 50.54 EUR/MWh. The French Cal’22 power contract traded 2.2% lower at 51.90 EUR/MWh.

European carbon prices ended lower on Wednesday, weighed by weaker energy prices and data showing a technical reversal in carbon. As such, the CO2 EUA expiring in December 2021 lost 2.9% to close at 33.65 EUR/tonne.