NBP futures opened the session with modest losses

Having opened long by up to 25MCM on Tuesday the UK gas system tightened over the day and was running slightly short by the end of the trading day.  Demand increased to 238MCM over the session to cover for the poor showing of wind generation in the power stack.  Prompt prices opened softer, and all products retained losses to the close despite forecasts of cooler temperatures running until early May.  The within day contract recorded the greatest loss of the day at 1.90p, closing at 54.75p, while the remainder of the prompt declined by up to a penny.  NBP futures opened the session with modest losses but there was never enough traction and the declines were reversed by the end of the day leaving contracts an average of 0.25p higher.  

 Baseload power prices continued to move higher on Tuesday

Baseload power prices continued to move higher on Tuesday with gains recorded right across the curve.  The front months gained an average of £0.65/MWh, while increases to longer curve contracts averaged around half of this.  Carbon prices closed at new record highs on the day with the 2021 contract adding 54 cent per tonne to settle at €44.89 per tonne. The day ahead contract eased back off recent highs to settle at £64.25/MWh yesterday. Wind generation continues to perform poorly in the UK power stack, although yesterday it increased slightly to 1.5GW which was only 4.2% of demand requirements yesterday.

Crude oil prices eased on Tuesday as the U.S. pass a bill to hit OPEC+ with lawsuits

Having hit a fresh one-month high on Monday crude oil prices eased on Tuesday as the U.S. pass a bill to hit OPEC+ with lawsuits while demand fears increased as India reported over 290,000 new cases of the virus.  Concerns rose yesterday that India, the third largest importer of oil, would impose restrictions after a record number of deaths and new cases of Covid-19 were reported.  In the U.S., the House Judiciary Committee have passed a bill which could expose OPEC to anti-trust lawsuits over its production cuts, although its not law at present similar bills passed previously have had no success. Brent closed at $66.57 a barrel, down 48 cents, while West Texas Intermediate shed 94 cents to close at $62.44 a barrel.

Norwegian import nominations are down on yesterday’s levels

As on Tuesday, the GB gas system has opened with a wide enough surplus of 16MCM as demand is forecast at just 216MCM for today. Norwegian import nominations are down on yesterday’s levels at just 62MCM while summer maintenance continues to impede supplies.  In the gas markets, there’s been no trades stuck on prompt products thus far, however, the futures market is active with early exchanges seeing contracts ease by around a half a penny from last night’s closing positions.  Brent is 65 cents down at $65.92 a barrel and focus will switch to the release of the U.S. weekly inventory report due later this afternoon.