Tight supply due to numerous Norwegian outages coupled with low European gas storage levels, aided in continuing the relentless bull-run that has overcome the markets. Adding to the momentum, EUA carbon futures continued to climb throughout the week, posting week-on-week gains of around 10% across the Dec-2018, 2019 and 2020 products.
However, week-on-week losses in the Brent crude oil market continued to show how small of an impact the commodity is currently having on utilities markets. The operator of the bidirectional IUK Interconnector pipeline that connects the UK to Belgium announced that due to a power failure at the Bacton terminal, the pipeline would be shut for one day. This meant that all exports to Belgium were ceased on Friday, which should have been a bearish factor for the UK markets, but ultimately it had a negligible impact on prices…read more