Overall gains were the order of the day

Gas market opened for trading for the first time in 2022 with strong gains

Following multiple sessions of significant losses over the Christmas and New Year periods the gas market opened for trading for the first time in 2022 with strong gains.  Gas contracts for February & March 2022 opened higher by some 35.00p and then pushed on further before establishing intraday highs of 244.79p/therm and 233.50p/therm respectively.  The market fluctuated significantly thereafter, and some weakness did return to towards this close as prices went lower.  Overall gains were the order of the day as the market sought to recover the recent losses.  The February and March contracts settled 46.00p higher while the full Summer 2022 contract was up by 44.17 at 198.16p.

 GB Baseload power futures tracked higher yesterday

GB Baseload power futures tracked higher yesterday in the first traded session of 2022 as colder temperature boosted demand.  This was the first increase in prices since the 22nd of December when a significant sell off across Europe commenced.  The February contract proved to be somewhat of an exception as it shed value towards the end of the session and finished at £274.50/MWh, down by £17.00.  The Day ahead power contract was less impacted as high levels of renewable generation put a cap on prices.  That said, the spot power contract closed at £172.00/MWh, up by £7.50.

 Brent crude contract for March delivery assumed front month status

The Brent crude contract for March delivery assumed front month status on Tuesday and initial movement on opening was down following on from the subdued market in the previous session.  However, some strength did return in the later part of the session as buying interest returned following the extended Christmas and New Year holidays.  The market still has an air of optimism despite the surge in Omicron cases throughout the world.  In fact, it is likely that OPEC will announce some positive news on production when their scheduled meeting concludes.  At market settlement the Brent crude contract for March delivery was priced at €80.00 a barrel, up by €1.11.

Gas prices have opened higher for the second day in a row

Gas prices have opened higher for the second day in a row although the gains are not as strong as this time yesterday.  The market is currently trading below the high point set on opening with prices easing in the last hour or so. The front month February contract is priced at 227.40p, up by 10.92p from last night’s settlement.  The Summer 2022 contract is up by 10.00p as it trades at 208.00p although it is below the high point of 215.00p set earlier in the session.  Forecast gas demand for this morning is coming in at 328MCM and the system is running short by 3MCM at the moment.  LNG send out remains high at 110MCM as terminals make room for the high level of tanker deliveries due this month.      

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