DAILY (08.01.2026): German spot hits over one-month high on cold weather, weak wind, strong demand

Oil prices extended losses on Wednesday, as oversupply concerns dominated despite a larger-than-expected draw in U.S. crude stocks and ongoing geopolitical tensions following the U.S. seizure of two tankers carrying Venezuelan oil. Brent crude slipped by 1.2% to $59.96 per barrel, while WTI crude dropped by 2% to $56 per barrel.

British gas prices rose amid freezing temperatures and faster storage withdrawals, with NBP spot 2% higher at 77.20 p/therm. Along the forward curve, the Summer 2026 contract gained more than 1% ending at 65.36 p/therm.

European spot power markets strengthened sharply. Germany’s day-ahead price jumped by 55% to a one-month high of 154.12 EUR/MWh, driven by weak wind output and stronger demand. France’s day-ahead contract climbed over 3% to 108.91 EUR/MWh after EDF warned of a planned 24-hour strike starting Monday.

Forward electricity prices edged higher in line with firmer gas markets, with the German 2027 contract trading 0.6% higher at 83.25 EUR/MWh and the French equivalent rising by merely 0.1% to 48.81 EUR/MWh.

European carbon prices remained flat on Wednesday, despite the resumption of EUA auctions and freezing weather. Consequently, EUAs expiring in December 2026 settled at 88.13 EUR/tonne.