Gas markets across Europe fell late into the session

Russia has committed to replenish European gas storage

NBP gas futures eased on Thursday after a choppy day of trading when Russian gas imports to Germany picked up through the entry point at Mallnow.  Gas markets across Europe fell late into the session after the German gas operator indicated the import nominations at Mallnow on the Polish boarder where the highest in over a week.  Russia has committed to replenish European gas storage stocks from Monday and the markets hoped this was the start of a ramp up in Russian exports. At the close of play, near months shed just over 7.00p while contracts from the summer out settled between 1.00 and 1.90p lower.  The spot and day ahead both settled at 178.05p yesterday while longer prompt products gained around 15.00p.

  Carbon EUAs rose for the third day

The late declines in the gas futures market fed into the baseload curve on Thursday as the front month shed £11.50/MWh.  While the remaining winter months also shed a significant amount of premium, losses from the summer out were more modest averaging at £1.70/MWh.  Carbon EUAs rose for the third day with contracts increasing by an average of 21 cent per tonne. Forecasts for a decrease in wind generation failed to provide support for the prompt yesterday as the day ahead product declined by £18.80/MWh.  Wind generation was over 8.5GW on Thursday and is forecast to fall below 6.0GW on Friday before picking up picking up a touch for next week.

OPEC+ agreed to another increase of 400,000 barrels per day

OPEC+ agreed to another increase of 400,000 barrels per day from December but this is just sticking to their plan, and they have largely ignored pleas from the U.S. to increase output.  The recovery in demand along with OPEC adhering to their schedule of a gradual pick up in production has contributed to the recent rebound in crude oil prices.  Trading yesterday saw crude oil prices dip late in the session after reports that Saudi Arabia’s output will soon exceed 10 million barrels per day.  Brent crude settled at $80.54 per barrel, down $1.45, while West Texas Intermediate fell by $2.05 to close at $78.81 a barrel.

Trading on the NBP futures market has been brisk this morning

Trading on the NBP futures market has been brisk this morning and having opened firmer prices have started to recede.  Latest trades for the front month have seen the contract reverse off a morning high of 201.00p to 192.00p.  The summer contract for next year is up 0.67p to 106.80p.  On the prompt there has been no appetite for early deals and the gas system is balanced with demand for today at 258MCM being met by the supply side at 260MCM.  LNG send out has increased with today’s nominations above 40MCM as UK reserves have been restocked.  In the crude oil markets, Brent has gained 48 cents a barrel to last trade at $81.02 a barrel.