GB baseload power contracts rose across the curve on Friday

 Prices increases on the UK NBP gas market have been posted on the last five consecutive sessions

Prices increases on the UK NBP gas market have become relentless at this stage and gains have been posted on the last five consecutive sessions.  The fundamental drivers in the market remain the same with Asian LNG pricing and slow Summer injections causing concern for many.  On Friday, the market did actually open lower, but this relief was short lived as the bull run continued.  The front month July contract traded above 80.00p for the first time and closed up by 1.07p at79.88p per therm.  Other Summer delivering contracts posted gains of just over a penny.  

 Wind generation over the weekend was well below average output

GB baseload power contracts rose across the curve on Friday with near dated products getting support from low wind generation while longer dated contract followed the broader energy complex higher.  the front month July contract added £0.85 to close at £84.60/MWh.   Wind generation over the weekend. was well below average output and is predicted to fall further at the beginning of this week. The day ahead baseload power contract was well supported and rose by £5.00 to £88.00/MWh.  

  Following a sluggish start in the early part of the session Crude oil prices began to push higher

Following a sluggish start in the early part of the session Crude oil prices began to push higher.  While increases over the last number of sessions have been modest, they have cumulatively retraced the majority of the premium lost during the session on this day last week.  Over the past week crude’s five-day movement is positive by 15 cents however the product has established a two year high of $76.18 a barrel.  The market has kept a keen eye on demand levels and last week’s inventory data from the U.S. Energy Administration would suggest an increase in demand even before the American driving season kicks off in earnest.  Focus also remains on OPEC and their plans for a modest increase in production.  

 EUA markets are quite and trading flat to last Friday’s close

UK gas demand has increased to 134MCM for today as lower levels of wind generation are offset by increases in conventional gas generation.  The gas system is well supplied this morning and a surplus of 17MCM is present.  Langeled flows are up on Friday’s levels with flows coming in at 33MCM. The UK NBP market has opened softer this morning and prices are down for those contracts that have traded so far.  The front month July contract is priced at 79.00p, down by 0.88p from Friday’s close.  Other near-term contracts that have traded are down by between 0.45p and 0.90p.  Crude oil market and carbon EUA markets are quite and trading flat to last Friday’s close.