NBP futures increased sharply on the day as carbon EUAs set new record highs
An increase in wind generation through the afternoon saw GB gas demand fall back in line with the seasonal norm on Tuesday. The spot and day ahead which had edged up in earlier trading reversed those gains and settled around 0.75p down. Forecasts for cooler than originally expected temperatures from next week, supported the longer prompt products like the balance of month which gained over a penny. NBP futures increased sharply on the day as carbon EUAs set new record highs. The April contract recorded the greatest gain of the day closing at 42.78p per therm, up 2.38p.
The spot settled a new record high at €40.58 per tonne yesterday
A surge in carbon EUAs and increased gas prices fed into the UK baseload power market yesterday with near months gaining an average of £1.90/MWh. Having fallen to the lowest level in almost a month at the start of March, carbon EUAS have rallied since with contracts gaining around 3.9% yesterday. The spot settled a new record high at €40.58 per tonne yesterday. Wind generation picked up through the day on Tuesday and generation and averaged 6.5GW. It is expected to double by the end of the week and the power prompt eased as a result. Baseload for the day ahead closed £3.70/MWh down at £52.02/MWh.
Crude oil prices had been buoyed by the approval of the stimulus package
Crude oil prices see-sawed on Tuesday before a late run down in prices left Brent to close 72 cents a barrel lower at $67.52. The U.S. benchmark West Texas shed over a dollar to settle at $64.01 a barrel. After the weekend attacks in Saudi Arabia, concerns of a disruption to supplies continued to ease yesterday. Earlier, crude oil prices had been buoyed by the approval of the stimulus package by the U.S. Senate which is promising for U.S. demand recovery. A late release of the weeks oil data from the industry group, the American Petroleum Institute, pressured prices to the close as the group’s own figures show U.S. stocks increased sharply last week. The official government report is expected later today.
Supplies have opened robustly, with a surplus of 14MCM predicted on the National Grid’s site
Wind generation has continued to displace gas fired generators from the GB power stack and gas demand is forecast lower at 249MCM for today. Supplies have opened robustly, with a surplus of 14MCM predicted on the National Grid’s site. Trading on prompt products has been sluggish off the blocks this morning with just the day ahead recording a trade which is up on yesterdays close. Natural gas futures on the NBP have opened firmer with the front month and season contracts both over a penny up in early exchanges. Crude oil prices are slightly lower as the markets await the release of the week’s inventory data from the Energy Information Administration due later today.