GB baseload power contracts rose across the curve on Friday
28 June 2021
Prices increases on the UK NBP gas market have been posted on the last five consecutive sessionsPrices 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 outputGB 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. 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.
Following a sluggish start in the early part of the session Crude oil prices began to push higher