Oil prices ended lower on Friday, weighed by renewed infections of Covid-19 in China, with several cases linked to the English variant. Moreover, an increase in U.S. crude stocks also put pressure on prices. Consequently, Brent oil dropped by 1.2% to $55.41 a barrel and WTI crude closed 1.6% lower at $52.27 a barrel.

British near-term gas prices were bullish on Friday, lifted by forecasts for colder temperatures and an undersupplied system. As such, the NBP February contract rose by 6.3% to 60.15 p/therm. Contracts further on the curve traded higher, despite losses on the oil market. The gas contract for Summer delivery gained 2.4% to 44.05 p/therm.

European day-ahead power prices were bullish on Friday, supported by outlooks for lower wind generation next week. As such, the German spot power price surged by 21.6% to 51.72 EUR/MWh and the French spot power price closed 3.7% higher at 51.81 EUR/MWh.

Front-year power contracts increased slightly, following rising carbon prices. Hence, the German Cal’22 power contract gained 0.6% to 50.99 EUR/MWh, while its French counterpart edged 0.4% higher at 52.05 EUR/MWh.

European carbon prices gained ground on Friday, on colder weather outlooks and prospects of auction supply resumption. As a result, the CO2 EUA expiring in December 2021 ended 0.4% higher at 34.24 EUR/tonne.