Daily (29.10.2020): Partial lockdowns worldwide weigh on energy demand and on the entire energy complex

29/10/2020 10:53 Daily

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Crude oil tumbled by over 5% on Wednesday, as US oil stocks increased more than expected, while overall demand is expected to fall. As such, Brent oil ended at $39.12 a barrel, down 5.1%, or $2.08, from Tuesday’s close and WTI crude dropped by 5.5% to close at $37.39 a barrel.

British gas prices dipped on Wednesday, following the conclusion of the Norwegian outage, strong supply and weak demand. Thus, NBP spot closed at 39.00 p/therm, or 3.4% lower than Tuesday’s close. On the curve, prices were influenced by the decline in crude oil prices. Consequently, the contract for November delivery traded 1.5% lower at 41.48 p/therm.

 

German day-ahead power contract rose on Wednesday, on the back of lower wind and solar generation forecasts. As such, the German spot power price increased by 9.1% to close at 32.65 EUR/MWh. However, the French day-ahead price ended 2.7% lower at 37.18 EUR/MWh, due to lower consumption.

 

Power contracts on the curve followed the decline in the wider energy complex, caused by the worsening coronavirus situation. Consequently, the German Cal’21 power contract traded 1.5% lower at 38.02 EUR/MWh, while the French contract for the same period ended 1.7% lower at 42.09 EUR/MWh.

 

Carbon EUAs fell to a new four-month low on Wednesday, pressured by weak auction results and a surge in Covid-19 cases across Europe. The Carbon EUA expiring in December 2021 slumped by 4.3% to settle at 23.21 EUR/tonne.

UK gas tariff changes add to 1Q21 uncertainty

26/11/2020 08:38:00

Looming and as-yet unquantified changes to UK gas transmission capacity charges expected early next year have reduced the visibility of the cost of moving gas in and out of the UK.

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Russian oil giant announces start of vast Arctic project

26/11/2020 08:32:00

He thanked Putin, with whom he has close relations, for the adoption of a law facilitating Russian investments in the Arctic

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Daily (25.11.2020): Oil futures surged to 9-month high on Monday amid strong optimism on coronavirus vaccine, transition to Biden presidency

25/11/2020 09:51:00

Crude oil futures climbed to fresh multi-month highs on Tuesday as optimism arising from potential coronavirus vaccines overshadows inventory build-up in the US. The beginning of transition of power in the White House added further support to WTI. Hence, Brent crude surged by $1.80, or 3.9%, to close at $47.86 per barrel. Meanwhile, U.S.WTI crude soared by $1.85, or 4.3%, to finish at $44.91 per barrel. Both contracts reached their highest settlements since March, even returning to levels before the outbreak of the coronavirus pandemic.

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