Crude oil markets remain on edge as cases of Covid 19 increase across the globe
23 April 2021
The UK NBP market has now gained for multiple sessions in a rowUK gas futures maintained their elevated position on Thursday and further risk premium was added to contracts during the session. The UK NBP market has now gained for multiple sessions in a row as pressure is maintained on contracts. For the most part contract moved of their intra-day highs as prices eased towards the close. The front month May contract traded to a high of 54.75p before closing at 53.86p, up by 1.04p from the previous session. Other contract across the curve added 0.83p on average in a well traded session. On the supply side forecast demand was coming in at 230MCM, which is normal for this time of year, and the system ran with a surplus of 11MCM.
Following the EU agreement on higher emissions reduction targets for 2030, EU ETS unit prices gained further during Thursday’s session and new record highs of between €48.12 and €47.09 per tonne were set. There is no doubt that the market is also being driven by compliance buying with the surrender date coming at the end of April. Gains on the forward can be largely attributed to the surging carbon price with higher gas input costs playing a role. The front month May baseload power contract added £1.35 to close at £63.85/MWh. Winter 2021 baseload pushed up to £73.10/MWh adding £0.90 in the process.
EU ETS unit prices gained further during Thursday’s session and new record highs were set