Energy Commodities: 08/03/10

Unless stated otherwise, all prices are for the close of March 5.

Brent crude oil futures: US$80.67/bbl, up 1.0 per cent, as of GMT 9:00, March 8

WTI crude oil futures: US$82.19/bbl, up 0.6 per cent, as of GMT 9:00, March 8

German power: €46.90/MWh, down 0.42 per cent

Coal: €91.50/t, down 0.27 per cent

Natural gas: GB 29.80p/therm, down 0.17 per cent

EUAs for December 2010 delivery: €13.30/t, up 1.37 per cent

CERs for December 2010 delivery: €11.91/t, up 1.36per cent

Latest buzz
Crude oil has performed strongly in early Asian trading today, with the NYMEX front-month contract for WTI breaking past US$82/bbl on the back of a weaker dollar and continuing optimism triggered by positive US employment data. The previous month is the fourth in a row in which US unemployment has either decreased or stayed constant and some market commentators believe that it would have recorded net gains in employment if it hadn’t been for the snowstorms across much of the country.

Some interesting news has come from China, where the country’s National Energy Administration (NEA) has announced that in future, national natural gas prices will be linked to crude oil prices and that this will affect the negotiations surrounding any future imports of gas from Russia. The two countries signed a memorandum of understanding back in 2006, for Russia to supply gas to China via two to be constructed pipelines, but this has been set back by price negotiations. However, with this winter’s natural gas shortage, China is now more motivated to find additional sources of supply.

European carbon prices have continued the modest gains seen on Friday, thanks to a cold snap, which is helping to drive energy prices upward EUAs for December delivery climbed €0.10/t to €13.40.t as of 07:57 GMT. According to some traders, utilities are focusing on the need to bank credits for the tighter phase III of the EU ETS and as a result, are buying up EUAs, to the extent that some have warned that phase III could in effect, become a “cornered market”.