Crude oil prices extended gains on Thursday after data pointed at a fall in the U.S. fuel stocks. Higher freight rates from Chinese shipping firm COSCO coupled with news about a new Brexit deal agreed between the UK and the EU also supported prices. Still, gains were capped by demand concerns in the wake of a larger-than-forecasted build in the U.S crude inventories and a string of poor economic data. Consequently, Brent crude inched up by 0.8% at 59.91 USD/bbl, while WTI futures added 1.1% to end at 53.93 USD/bbl.
Most of the British gas prices remained bearish on Thursday. NBP spot slid by 0.8% to 26.00 p/therm, as weaker demand forecasted for next week and firmer gas send-out from LNG terminals outweighed the upward stimulus from a decline in Norwegian flows via the Langeled pipeline. On the curve, the July 2020 delivery contract was 0.4% down at 41.38 p/therm, with one LNG cargo unloaded on Thursday and another four vessels expected by the end of next week.
Forecasts for a surge in wind generation and lower demand due to milder weather weighed on European day-ahead electricity prices on Thursday. The German spot power price plunged by 19.2% to 35.35 EUR/MWh. The equivalent French contract slumped by 11% to 39.23 EUR/MWh, amid steady nuclear power supply after a two-day utility workers’ strike.
Forward electricity prices lost momentum on Thursday, influenced by bearish carbon and gas markets. The price for the 2020-delivery German power contract dropped by 1.3% to 48.40 EUR/MWh, while the equivalent French contract lost 1% to settle at 51.33 EUR/MWh.
The European carbon prices climbed to a new intraday three-week high before retreating on Thursday, as the bullish news of a Brexit agreement sealed between the EU and the UK was followed by uncertainty over its approval in the UK Parliament. The price for the 2019-expiry contract decreased by 0.9% to 26.06 EUR/tonne.
Daily (04.03.2021): Growing volumes of LNG supply pushed British gas prices lower on Wednesday
04/03/2021 10:27:00 <READ MORE