Energy Commodities: 03/03/10

Unless stated otherwise, all prices are for the close of March 2.

Brent crude oil futures: US$78.19/bbl, up 0.0 per cent, as of GMT 9:00, March 3

WTI crude oil futures: US$79.72/bbl, no change, as of GMT 9:00, March 3

German power: €47.75/MWh, down 0.10 per cent

Coal: €94.50/t, down 1.20 per cent

Natural gas: GB 31.60p/therm, down 0.32 per cent

EUAs for December 2010 delivery: €13.30/t, down 0.23 per cent

CERs for December 2010 delivery: €11.86/t, up 0.17 per cent

Latest buzz
Crude has continued to climb on the back of positive economic data, such as the decision of the Australian central bank to raise interest rates to four per cent and the news that the unemployment rate in Japan has fallen to a 10-month low. The news prompted NYMEX crude to rise above US$80/bbl, before losing ground, as fundamentals do not in the eyes of many, support prices above this ceiling. Bullish sentiment was also reined in by the American Petroleum Institute’s report that US crude oil inventories for the previous week rose by a larger than expected 2.67mbbl.

Iberian spot power rose on March 2, for the second session in a row, as gale force winds have died down. However, the severe storms from the previous week have significantly boosted southwest Europe’s hydropower reserves, effectively preventing prices from rising further. Spain’s Omel exchange, fixed yesterday’s day-ahead pool price at €20.71/MWh, still much lower than that seen during the first three weeks of February. Wind power is expected to climb back to 6000MW on March 4, compared to a forecasted 3500MW today.

The European carbon market has been essentially flat, with little in the way of new developments, although EUAs for December 2010 delivery fell slightly to close at €13.30/t.