Oil prices gained momentum on Tuesday in line with a weakening dollar, boosted by the prospect of further economic support in the United States. Hence, Brent crude for March delivery rose by $1.15, or 2.1%, to settle at $55.90 a barrel. Meanwhile, U.S. WTI crude settled 62 cents, or 1.18%, higher at $52.98 per barrel.

British near-term gas prices recovered following four days of declines, with NBP for February delivery surging by 5.3% to 57.77 p/therm as a result of strong Asian market. Along the forward curve, the gas price for Summer 2021 delivery jumped by 5.2% to 42.85 p/therm, tracking a bullish commodity market.
 
Increased wind generation and temperatures above seasonal average dragged down the European spot electricity prices on Tuesday. Consequently, the German day-ahead power plummeted by 19.3% to 36.28 EUR/MWh, while the French equivalent contract settled at 49.13 EUR/MWh, tumbling by 18.7% on a daily basis.

Year-ahead power contracts increased in response to a bullish energy complex. The German Cal’22 power added 1.9% to 49.61 EUR/MWh, while the similar power contract in France ended at 50.85 EUR/MWh, notching a 1.6% gain day-on-day.
 
European carbon prices jumped back above €33 on Tuesday, snapping a four-day decline amid forecasts of colder temperatures. Thus, EUAs expiring in 2021 rallied by 4.7% to 33.09 EUR/tonne.