January saw longer-term contracts dip slightly, but the day-ahead contracts saw notable gains on the back of cold weather. Annual power and gas prices have been trading at similar levels to October 2012 after being driven lower by record low coal and carbon prices in January. Coal prices dropped notably as global oversupply continued; annual coal prices declined 3.7% to a monthly average of $92.0/t. Carbon prices collapsed after an allowance auction failed to reach the reserve price. Annual carbon dropped 10% to a monthly average of €5.9/t. In contrast, month-ahead Brent crude increased 2% to a monthly average of $111.5/bl on renewed economic optimism and instability in North Africa.