Brent recorded the largest single day loss since 20 April 2020

 Crude oil prices slumped late in the session

Crude oil prices slumped late in the session on Thursday as vaccine supply issues in Europe and the reintroduction of lockdowns in Italy and Poland raised concerns for demand recovery. Brent eased by $4.72 a barrel, recording the largest single day loss since 21st of April 2020 and racking up a fifth consecutive day of losses. In the gas markets, prompt prices were buoyed early on but later yielded the morning gains as LNG supplies increased. The late slide in crude oil prices came too late to impact NBP futures, however, early gains were reversed and near months went on to average losses of 0.50p.  

 On the prompt the spot and day ahead had come under pressure with reports of unplanned outages affecting Norwegian imports

The prompt and futures markets opened with strong gains on Thursday but the upward trajectory was not maintained and contracts eased off the early highs with most products reversing all the morning gains to settle lower on the day. On the prompt the spot and day ahead had come under pressure with reports of unplanned outages affecting Norwegian imports but settled flat at the close. LNG send out was robust on the day and the prospect of ten or more cargoes arriving at UK ports over the next couple of weeks offered some comfort to the market. Near NBP futures closed up to 0.66p lower as the prompt eased but a late slide in crude oil prices came too late to impact gas futures.

 Fifth day of losses for both Brent and West Texas Intermediate

Crude oil prices slumped on Thursday after a sell-off late in the session. It was the fifth day of losses for both Brent and West Texas Intermediate while Brent recorded the largest single day loss since 20 April 2020. Hiccups with the rollout of vaccines in Europe along with the reintroduction of lockdowns in nations like Italy and Poland are slowing demand recovery in Europe. Britain may also have to curb its vaccine program next month with delays expected in shipments of AstraZeneca from India. The markets had been recovering since news of the vaccines broke and Brent peaked just over a week ago at $69.63 a barrel. Brent settled at $63.28 a barrel on Thursday down $4.72.

 GB gas demand is expected to increase to 274MCM today to compensate for lower wind generation

The late sell-off in crude oil prices continued into this morning with Brent dipping to a low of $62.33 a barrel, however, prices have recovered since and Brent is currently exchanging at $64.08, up 80 cents a barrel on last nights close. NBP futures have continued to decline with last night’s slump in crude oil now feeding into the curve. The front month, April, last traded at 43.70p, down 0.81p. Prompt products have yet to show a trade but the bid/ offer spreads although wide, are suggesting a softening of prices. GB gas demand is expected to increase to 274MCM today to compensate for lower wind generation, but supplies are balanced with LNG nominations of 107MCM for today.