Wholesale power prices were bearish at the end of January due to strong supply and lower demand. Despite low wind generation, UK power contracts dropped 2.5% on average due to milder weather. Contracts dropped by 0.7% at £37.0/MWh while Summer contracts dropped by 1.5% (£35.84/MWh) and Winter by 1.5% (£44.21/MWh).
Gas prices dropped by 3.4% on average at the end of January, partly due to high volumes arriving in the UK. A spell of cold weather on mainland Europe had a short-term impact on price. Month ahead prices dropped by 0.1%, closing the month at 27.25p/th.
The Brent oil price is hovering around $58/b whilst the Coronavirus pandemic has increased concerns over lower oil demand in China and a growing concern that many deliveries will be turned away as a result of the outbreak.
Coal prices moved down in January though are expected to recover this year on forecasts of stronger demand from some Asian countries.
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