The majority of gas and power contracts fell further last week, as prices were pressured by declines in global markets and commodity prices, caused by the spread of the coronavirus. The exceptions were several near-term power and gas contracts which experienced some gains, owing to forecasts of colder temperatures and lower wind generation.
Brent crude oil fell 6.5% to average $53.93/bl as prices recorded their largest weekly fall in over 4 years, dropping 10.6% from Monday to Friday. In contrast, EU ETS carbon increased 3.7% to average €24.04/t, although prices ended the week down at €23.33/t.
Whilst a bearish global economy will hold some sway over GB energy prices this week, NBP gas and baseload power price movements could hold steady on forecasts of a drop in wind generation and rising gas demand levels. Brent could find some stability if OPEC decide to implement deeper cuts to oil supply at a meeting on 5-6 March.