Daily (16.12.2020): EUAs extended record high on Tuesday in tandem with a bullish energy complex

16/12/2020 09:20 Daily


Crude oil  prices continued to gain ground on Tuesday, boosted by progress on vaccine rollout that helped ease market concerns over a spiral virus outbreak. Hopes for a new stimulus package in the United States added further support to oil prices. Hence, Brent crude for February delivery rose by 47 cents, or 0.9%, to close at $50.76 per barrel. Meanwhile, U.S. WTI crude for January delivery increased by 63 cent, or 1.3%, to settle at $47.62 a barrel. Both contracts posted their highest levels in nine months.

Demand levels below the seasonal norm and a gas system comfortably supplied, sent NBP spot 1.6% lower at 45.75 p/therm on Tuesday. However, maintenance in the North Sea has impacted storage injections and increased supply risk for the start of next year, pushing the gas price for January delivery 2.9% higher at 49.55 p/therm. Along the forward curve, the gas price for year-ahead delivery soared by 2.1% to 43.06 p/therm, tracking bullish oil and carbon markets.

European spot electricity slipped on Tuesday amid forecasts showing a jump in wind generation and continued mild weather. As a result, the German day-ahead power price declined by 0.7% to 50.06 EUR/MWh, while the equivalent power contract in France settled at 52.10 EUR/MWh, posting a 0.6% loss day-on-day.

Year-ahead power contracts edged higher in tandem with a broader market rally. The German Cal’21 power increased by 1% to 46.79 EUR/MWh, while the similar French contract settled at 50.18 EUR/MWh, notching a 1.2% gain on a daily basis.

European carbon prices extended record highs on Tuesday in tandem with a strong energy complex and amid uncertainty about forthcoming auction supplies. As a result, EUA expiring in 2021 surged by 3.8% to 32.18 EUR/tonne.

Daily (24.02.2021): Oil prices stable after record highs, but general bullish sentiment is surrounding the market

24/02/2021 09:21:00

Crude oil prices diverged on Tuesday, but ended rather flat after hitting fresh 2021 highs amid a lack of major events to impact the oil sellers. Hence, Brent crude added 0.2% to settle at $65.37 a barrel, buoyed by signs that global coronavirus restrictions were being eased. Meanwhile, U.S. WTI crude steadied at $61.67 a barrel amid uncertainty about the return of Texas crude production and concerns about the pace of a U.S. economic recovery.


Oil products caught between Covid and green push

24/02/2021 08:51:00

Most forecasts for products demand and prices have been steadily revised upwards as vaccination programmes have got underway and this has created positive market sentiment, Argus' global head of oil products Stephen Jones told the forum held today during the IP Week conference. But, any actual demand recovery will depend on how quickly governments lift lockdown measures. One major unknown is how well the vaccines will deal with new variants of Covid-19.


EU says it does not need Nord Stream 2, but only Germany can block it

24/02/2021 08:42:00

The European Union does not need the Nord Stream 2 pipeline for its energy security but any decision to stop the project carrying Russian natural gas to Germany would have to come from Berlin, a senior European Commission official said on Tuesday.