Crude oil futures tumbled to multi-month lows on Thursday amid mounting COVID-19 cases that resulted in tighter restrictions in Europe, slashing consumption for the black gold.

 

Hence, Brent crude shed by $1.47, or 3.8%, to settle at $37.65 per barrel, the lowest level since May 29. At the same time, U.S. WTI crude fell by $1.22, or 3.3%, to settle at $36.17 a barrel, touching the weakest level since June 1.

 

British near-term gas prices lost ground on Thursday, driven by the recent lockdowns in Europe and weakening Asian LNG prices on Thursday. Consequently, the NBP spot fell by 2.8% at 37.90 p/therm. Along the forward curve, the gas price for year-ahead delivery decreased by 1.6% to 37.67p/therm, mainly as a result of bearish oil prices.

European spot electricity prices plummeted on Friday amid concerns that imminent lockdown measures to struggle with surging Covid-19 cases will dent demand. In this context, the German day-ahead power price dived by 7.5% to 30.19 EUR/MWh, the lowest level since early June. Meanwhile, the equivalent power contract in France plunged by 11.2% to 33.02 EUR/MWh.

Year-ahead power prices followed the same bearish trend, under pressure of a weak energy complex due to COVID-19 jitters. Thus, the German Cal’21 power declined by 0.7% to 37.75 EUR/MWh, while the similar power contract in France settled at 41.75 EUR/MWh, posting a 0.8% loss day-on-day.

EUAs expiring in 2021 soared by 2.8% to 23.67 EUR/tonne, buoyed by a stronger auction, neglecting concerns over the impact of renewed coronavirus restrictions.