Demand levels are forecast to increase strongly over the coming weeks as a result of colder weather and low renewable power generation.
Gas prices have continued to rise throughout January, with the one-year forward price for commercial gas closing at 47.98 ppt on 29th January (an increase of 3.98 ppt since the end of December).
Power
The price of commercial electricity also continued to rise this month. With market-close data on 29th January placing the one-year forward price at £55.73/MWh.
As reliance on fossil fuels rises due to weak wind generation and colder weather, power continues to find some support from the rising gas market.
Oil
Brent displayed a rise throughout January, buoyed by falling inventories and hopes of a swifter global economic recovery, with prices currently sitting at $55.5/b.
Global oil demand slows rising prices due to halted vaccine rollouts and renewed travel restrictions throughout the UK.
Coal
Last years’ statistics show UK coal imports slumped 30% year on year in the first 11 months of 2020, totalling just 4.8m tonnes (down from 6m tonnes over the same period in 2019).
Outlook for 2021 remains uncertain as cold weather caused coal demand to spike throughout January and the UK Government gives go-ahead to a new coal mine off the coast of Whitehaven.
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