- Market data has continued to climb over the last month, with the one-year forward price for commercial gas closing at 44.00 ppt at the end of December (up from 38.81 ppt at the end of November).
- Continued cold weather over the coming weeks will result in increased demand throughout January.
- Market close data on 24th December revealed the one-year forward price for commercial electricity has climbed again since last month, closing at £54.40/MWh, another big increase from £48.26/MWh on 30th November.
- Power continues to follow the gas trends, with increased demands strengthened by the cold weather.
- Prices of Brent Crude Oil continued to rise throughout December aided by the falling dollar and tensions in the Middle East, sitting at $51.60 per barrel as of 31st December 2020.
- With the UK looking to impose tighter COVID restrictions, short-term demand outlook is worsening. However, the outlook for later in the year looks optimistic as more people are vaccinated against the Coronavirus.
- Weak overall power demand, strong competition from natural gas, and rising renewable generation all negatively impacted European coal-fired generation in 2020.
- According to the IEA’s December report, European electricity demand is expected to recover by 2.3% in 2021, causing coal-fired generation to climb by around 0.9% throughout the year.