Crude oil has relinquished half of yesterday’s gains in overnight trading on Asian markets
04 August 2020
Monday saw the first significant shift in the front month gas price in over a yearMonday saw the first really significant shift in the front month gas price in over a year. An early supply deficit on the UK gas system sent prompt prices higher and the front month responded accordingly. Prompt prices gained an average of 2.65p with the strongest shift coming on the balance-of-month contract which was up by 3.00p. The September contract gained 2.55p to settle at 18.19p and the Q4 contract was up by 1.05p. Movement on contracts further out the curve was less significant but the front winter gained 0.83p none-the-less. The system deficit was only corrected in the last hour of trading as Langeled deliveries and storage withdrawals both rose to over 20MCM.
Near futures power contracts were pushed higher by strong gains on the gas market but falling carbon prices tempered the gains some-what. The new front month contract for September gained £1.80/MWh to settle at £35.50/MWh while the front winter contract was up by £0.50/MWh. Emissions prices eased marginally on the day. Day ahead baseload contract fell by 10% on Monday, bucking the trend on the wider energy markets. The contract shed £3.60/MWh to settle at £30.50/MWh as an unexpected rise in wind availability was forecast for today.
Near futures power contracts were pushed higher by strong gains on the gas market