Crude oil prices edged higher for a fifth consecutive session
17 June 2021
The UK gas system ran short throughout the dayAn unplanned outage on the Karsto field and ongoing planned maintenance on the Norwegian gas system saw Langeled deliveries fall below 20MCM yesterday. The UK gas system ran short throughout the day as a result but despite the supply deficit, prompt gas prices fell by an average of just over 1.50p. With the NBP spot price offering a premium today ahead for most of the trading session, storage withdrawals ramped up to help balance the system at close of business. Near futures contracts shed over 0.50p as the supply outlook for the remainder of the summer months improves with stronger Norwegian supply post-maintenance.
GB baseload power futures eased in line with falling gasGB baseload power futures eased in line with falling gas and carbon prices for second consecutive day on Wednesday. Losses were slight by comparison to Tuesday with the front month down by £0.27/MWh and Winter 21 falling by just £0.10/MWh. EUA’s fell by an average of just 5 cent per tonne. The day ahead baseload power price gained £4.50/MWh as both wind and solar generation levels were forecast lower for today. The day ahead baseload contract settled above £80.00/MWh for the first time in over a month.
Crude oil prices edged higher for a fifth consecutive session on Wednesday. The weekly inventory data from the U.S. showed crude stocks falling by 7 million barrels but gasoline stocks rose for a third week running, tempering any bullishness in the market. Brent crude gained 40 cents to finish at $74.39, its highest settlement level since April 2019. West Texas Intermediate recorded a similar gain to settle at $72.14 a barrel. Market optimism for demand increase is growing with the roll-out of vaccines and lifting of restrictions in Europe and the U.S. but there is also concern over possible production increases if OPEC increases quotas or Iranian sanctions are lifted.
Brent crude gained 40 cents