The week began fuelled by volatility with gas flows into the Mallnow entry point on the German/ Polish border increasing over Monday afternoon by 85% on what was being flowed last week, helping to present a mixed bag early on.
Last week saw gas and power push higher on European storage levels continue to languish below the lows of the recent range, with low LNG arrivals expected over the coming month, and disruption of Russian supply into Europe
Another bullish week across the energy complex with fundamentals unchanged as renewable output remains lower, continued cooler temperatures, and a strong Asian LNG bid all mean that injection season has faltered.
Last week saw gas and power prices lifted along the curve as attention to storage injections re-ignited with temperatures across the UK dropping off, halting the injections we had seen whilst temperatures were often in the mid-20°Cs.
Last week saw gas markets begin the week with strength after a long weekend, however, this was eroded over the week as front-month dropped some 1.62p/therm, Winter 21 dropped 1.16p/therm and Summer 22 lost 0.81p/therm.
Cold weather premiums were shed from gas and power markets in a week that saw mild and windy conditions along with LNG providing enough flex in the supply stack to combat Norwegian and North Sea outtages
Last week saw carbon take the limelight as the commodity rose a whopping €5.25/tonne, to not just clear comfortably above the €30 level, but reach new highs as the contract comes ever closer to €40/tonne.
An overall bullish week across the energy complex as contracts were spurred higher by cold temperatures, forecasts of cooler temperatures at the start of February, rumours of French nuclear workers striking and dwindling storage levels.