Power prices made gains in the UK as well as on the continent as feed stocks, coal and gas, rallied alongside oil and equities as traders took on further bullish bets. An uptick in demand, driven by cooler weather and a collapse in wind power output, lifted power prices as gas fired power plants gained market share.
European equities are dealing lower from the open as profit taking occurs after an almost 14 day unbroken rally, this has carbon prices under pressure as they have been following equities closely.
An increase in temperatures over the coming weekend could ease demand further, a reopening of air travel and tourism will, on the other hand, lift demand as the economy bounces back. Little wind and above normal temperatures are in store for the UK and Europe as the summer holiday season approaches.
Oil prices fell on Wednesday after a rise in crude and fuel stockpiles in the United States revived fears about oversupply and falling fuel demand in the world’s largest crude consumer amid the coronavirus outbreak. Brent crude futures LCOc1 fell 1.6%, to $40.51 a barrel by 0636 GMT after gaining nearly 1% on Tuesday.
