March 2021 Energy Market BriefOn average, seasonal gas contracts from summer 21 to summer 23 were 0.4% higher in February than in January; however, prices broadly ended the month lower than they were at the month’s start.
Annual Gas Prices
Annual Power Prices
In February 2021 gas prices, particularly for near-term delivery but also some longer-dated contracts, fell from the highs observed in January. However, gas prices remained above their levels from the same time last year.
On average, seasonal gas contracts from summer 21 to summer 23 were 0.4% higher in February than in January; however, prices broadly ended the month lower than they were at the month’s start. Winter 21 rose 0.8% to average 50.58p/th, while the summer 21 contract fell 3.6% to 41.44p/th. As the month progressed, falling LNG prices, continued lockdowns across the UK and much of Europe, and warmer weather weighed on prices.
Power contracts experienced mixed price movements in February, with losses in near-term contracts but gains in longer-dated contracts. However, as with the gas market, power contracts dropped towards the month’s end.
Seasonal power contracts up to and including summer 23 rose 1.4% on average in February, supported by bullish commodity markets, particularly carbon prices. Winter 21 rose 2.2% to £59.66/MWh while summer 21 lost 0.6% to £52.02/MWh. The annual April 21 power contract rose 0.8% to average £55.84/MWh.