Worries of another cold snap pushes near-term gas and power contracts higher, whilst seasonal contracts reach fresh highs. Oil prices begin to reverse losses from the previous week.
Last week we saw all near-term power and gas contracts experience gains as a result of worries of more cold weather. Seasonal power and gas contracts also reached fresh multi-year highs while carbon prices increased even more on the week before. Moving away from the wholesale market, coal-fired power stations were running at high levels because of the higher near-term gas prices. This showed that coal still has a role to play in the UK’s generation mix in the short-term.