The GB baseload prompt market reached an all-time high

There appears to be no end to the price increases on the UK NBP

There appears to be no end to the price increases on the UK NBP as contracts set new record highs once again yesterday.  The setting of new record levels in now becoming a daily occurrence.  The market opened in a benign fashion but as soon as trading started in earnest price increases were the order of the day.  The market was happy for the news Norwegian maintenance set the agenda for the day.  Once again, the main focus was on Winter 2021 with over 3.76p of premium added.  Based on out turn prices to date and monthly forward prices Cal. 2021 is now priced at 91.80p per therm.  Calendar 2022 is coming in at a higher level at 96.84p per therm.  

 The GB baseload prompt market experienced record prices

The GB baseload prompt market experienced record prices yesterday and reached an all-time high as spikes in the balancing market, strong prompt gas prices and low renewable generation combined to drive prices.  A number of unplanned outages saw the minimum supply margin contract significantly.  Units at Didcot and Drax experienced outages. On the baseload power curve, futures were once again supported by gains in NBP gas futures and increases in carbon EUAs. The front month settled £3.60/MWh higher at £131.75/MWh.  Carbon prices increased by between 65 and 70 cent per tonne on Wednesday.

 Market finished at the higher end of the traded range

Crude oil markets broke a three-session losing streak as markets firmed yesterday.  Gains were not that significant as contract traded in a range of just over $1.40.  The market finished at the higher end of the traded range as market participants priced in some risk.  The weekly U.S. inventory figures were delayed by a day on account of the U.S. Labor Day holiday which took place last Monday.  In the absence of the data and based on some negative projections from the EIA the market priced in some premium.  At market settlement the Brent crude contract was up by 91 cents at $72.60 a barrel.  The WTI contract closed at $69.20 a barrel, up by $1.07.

 The GB gas system is running short by 5MCM

The GB gas system is running short by 5MCM this morning with supplies forecast 130MCM against today’s demand of 135MCM. Natural gas imports from Norway remain lower than usual with ongoing maintenance works restricting deliveries through the Langeled feed.  The spot and day ahead products have eased from yesterday although few trades have been made thus far.  On the curve, futures are less than a half penny up in early exchanges with the front month contract, October last trading at 139.85p per therm.  Crude oil prices have opened flat on both sides of the Atlantic, as the market awaits the U.S. inventory figures due later today.