On Tuesday, crude oil prices slightly increased from earlier lows, however, the rebound was limited by the prospect of higher interest rates and concerns over the health of the global economy. Hence, Brent crude edged 0.2% higher at $90.92 a barrel. Meanwhile, U.S. WTI crude rose by 0.5% to $89.23 a barrel.
British near-term gas prices fell on Tuesday amid increased Norwegian supply and stronger wind generation. Moreover, the reduced demand for natural gas for heating, due to temperatures above seasonal norms weighed on prices. As a result, NBP spot slumped by over 9% to end at 75.00 p/therm. Along the forward curve, the Sum-24 delivery contract declined by 4.8% to 107.90 p/therm, in tandem with carbon prices.
Spot electricity prices in Europe jumped on Tuesday due to weaker renewables output and stronger demand. The German day-ahead power price hiked by 203% to end at 69.49 EUR/MWh. At the same time, the French equivalent contract rocketed by over 52% to 75.52 EUR/MWh.
In contrast, front-year electricity prices retreated yesterday, tracking lower gas and carbon prices. The German Cal’24 power contract decreased by 2.8% to end at 114.87 EUR/MWh. The similar contract in France dropped by 2.8% to 121.31 EUR/MWh.
European carbon prices continued the decline, hitting their lowest in four months on Tuesday due to decreased demand for EUAs, driven by reduced profit margins for coal-fired power plants. Thus, EUAs expiring in Dec-23 fell by 1.4% to 79.65 EUR/tonne.