Cyber-attack on energy infrastructure in the U.S. saw crude prices open higher
11 May 2021
A big increase in wind generation ensured gas demand remained subduedThe below average temperatures which prevailed throughout the past week climbed to more normal levels for the time of year and demand on the UK gas system eased as a result. A big increase in wind generation ensured gas demand remained subdued and the system was finely balanced throughout the trading day. A further surge in carbon prices lifted the gas futures market with the front month gaining almost 3.00p while Q3 was up by 2.66p and Winter 21 by 2.25p. Despite the low demand and well-balanced system, prompt gas prices rose in sympathy with the front month, averaging gains of 2.30p.
GB power contracts recorded strong gains right along the curve as carbon prices moved to new record highs yesterday. The front month saw the biggest gain of £2.35 and Q3 was up by £1.85 while seasonal contracts out to Winter 23 recorded gains averaging £1.75/MWh. EUA prices in a range between €52.10 and €53.56 per tonne. The day ahead baseload contract gained £5.00/MWh with higher gas prices and forecast lower wind today. Wind availability is expected to remain subdued and temperatures fall back below the seasonal norm for the remainder of this week.
The front month saw the biggest gain of £2.35
A cyber-attack on the system controlling flows on one of the most critical energy infrastructure links in the United States caused U.S. oil prices to open stronger on Monday. The Colonial Pipeline system carries most of the oil distillate products from Louisiana to the East Coast including Washington and New York. The ransom-ware attack disrupted supplies of gasoline and heating oil but the pipelines are expected to be back in operation by the weekend. Following an early lift in prices, the U.S. crude oil benchmark, WTI, retreated to settle unchanged while gasoline and diesel prices retained most of their early gains. Brent crude also finished virtually unchanged day-on-day.
The ransom-ware attack disrupted supplies of gasoline and heating oil