Crude prices hit an eight-month high on Wednesday, supported by a drop in US oil stocks, progress on the coronavirus vaccine and optimism ahead of the next OPEC+ summit. As such, Brent crude rose by 1.6% to $48.61 a barrel, while WTI oil ended 1.8% higher at $45.71 a barrel.

Wednesday trading saw a boosted prospect in gas for heating demand amid colder weather outlook, thus pushing the NBP spot price 3.1% higher at 40.00 p/therm. At the same time, an increase in oil prices lent support to gas contracts on the curve. As a result, the Summer 2021 gas contract traded 0.9% higher at 32.70 p/therm.

European power prices jumped on Wednesday on the back of colder weather outlook and lower wind generation. As a result, the German day-ahead power prices closed 20.7% higher at 56.55 EUR/MWh, while the French spot power price soared by 15.2% at 54.68 EUR/MWh.

Contracts on the curve also gained ground on Wednesday, supported by stronger fuel prices. Hence, the German Cal’21 power contract traded 2.7% higher at 41.05 EUR/MWh, while its French counterpart ended 2.9% up at 44.76 EUR/MWh.

European CO2 prices were almost unchanged on Wednesday, despite progress on the coronavirus vaccine and positive hopes for a smooth US presidential transition. Hence, the EUA expiring in December 2020 closed rather flat at 27.62 EUR/tonne.