Daily (20.05.2020): British spot and near-term gas prices lost ground on Tuesday amid lower demand, healthy supplies

20/05/2020 09:51 Daily

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Crude oil futures diverged on Tuesday, with U.S. WTI crude edging 0.4% higher, to close at $31.96 a barrel in a rather optimistic climate amid the resumption of world demand at a time when supply is absorbing. Meanwhile, Brent crude for July delivery, which struggled to take direction in a volatile trading, shed by 16 cents, or 0.46%, to settle at $34.65 per barrel.

A weak demand and a healthy supply from Norway put pressure on the spot and near-term gas prices on Tuesday. As a result, the NBP spot dipped by 5.7% at 11.60 p/therm, while the gas price for July 2020 delivery dropped by 4.1% to 11.46 p/therm.


The year-ahead gas price increased slightly by 0.2% to stand at 33.49 p/therm, supported by positive early results on a potential coronavirus vaccine and optimism about global economic activity slowly resuming to the normal.


European spot electricity prices evolved differently on Tuesday, with the German day-ahead price jumping by 35.3% to 32.05 EUR/MWh, buoyed by a fall in German renewables generation. On the contrary, the day-ahead price in France decreased by 1% to 19.42 EUR/MWh due to an expected lower consumption.


Year-ahead power contracts were mixed, with the French Cal’21 0.7% down at 44.46 EUR/MWh, tracking the fall in gas, coal and carbon emission prices. At the same, time the similar power contract in Germany increased by 0.4% to 37.02 EUR/MWh, despite a bearish energy complex. 


EUAs expiring in 2021 edged 1.8% lower at 20.33 EUR/tonne, driven by a weaker auction supply.

Daily (09.07.2020): Higher Norwegian flows led to an oversupply in the British gas system on Wednesday

09/07/2020 10:55:00

Crude oil prices added momentum on Wednesday, following an increase in U.S. crude imports and a weekly decline in gasoline supplies that indicated an improvement in energy demand. Hence, Brent crude traded 0.5% higher at $43.29 a barrel. At the same time, WTI futures edged 0.7% higher at $40.90 a barrel.

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