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.
Power
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.
Oil
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.
Coal
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.
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