- We have seen a continued erratic start to the year which saw gas prices peak in early February. However, gas markets have gradually declined and stabilised since (with the one-year-forward price closing at 43.98ppt on 26th February), led by temperatures returning to seasonal norms and optimism from the government’s roadmap out of lockdown.
- While healthy imports kept the system oversupplied towards the end of February, we expect to see an increase in demand throughout the beginning of March due to the colder weather forecast.
- Power prices also began to drop this month, following gas trends. As of 26th February, the one-year forward price for commercial power closed at £54.97/MWh, a small drop from £55.73 on 29th January.
- Power prices are expected to increase throughout March though, supported by high carbon prices and following gas trends. This is due to the colder weather forecast and predicted low wind.
- Brent oil prices have continued to rise throughout February due to an increase in US production and backed by the upcoming OPEC meetings on 5th/6th March.
- As of 25th February, Brent Crude prices had climbed above $67/b, a stark rise from last month which saw Brent prices settling at around $55.5/b.
- According to this report, the Global Metallurgical Coal Market is poised to grow by $14.00 bn during 2021-25.
- This news comes as UN Secretary-General, Antonio Guterres, urges all governments, private companies, and local authorities to end the global coal addiction and cancel all global coal projects in the pipeline.