The market was volatile throughout the day
The UK NBP and all other major European gas hubs continued on from where they left off the previous day with strong increases on opening. The UK market was up by 10.00p on opening and quickly added further risk premium as the implication of the escalation of tensions in eastern Europe sunk in. The news that Germany had stalled the certification of the Nord Stream 2 pipeline in response to Russian actions was the impetus the market needed to push higher still. The market was volatile throughout the day with wide bid/offer spreads on contracts a significant feature. While gas contract did finish off their highs over 22.00p of premium was added to all periods out to Winter 2022.
GB baseload futures extended gains for the second session in a row
GB baseload futures extended gains for the second session in a row and significant premium was added to contracts for all periods. The escalating tensions between Ukraine and Russia have caused considerable turmoil on European power markets with higher gas and carbon prices feeding into the power market. The front Summer and Winter 2022 contracts surged by £18.50 and £19.00 respectively with average gains across the curve coming in at just under £16.00/MWh. Gains on the power prompt were muted at £2.50/MWh as high levels of wind generation keep the system well supplied.
Brent Crude stayed at a seven-year high during trading on Wednesday
Brent Crude stayed at a seven-year high during trading on Wednesday with turbulence across the energy complex continuing. Despite a lot of commentary about crude oil breaking through the $100 a barrel mark, the market fell well short of this important level although it remains to be seen if this line will hold. Crude oil prices continue to respond to the escalation of tensions between Russia and the West although the response has been more muted than other commodities. Case in point being the EUA carbon market where contracts surged once again. Over €5.00 per tonne was added to the spot where prices finished at €94.70 per tonne. The crude oil market settled flat at $96.84 a barrel, having traded in a narrow range of a dollar.
Crude oil markets have surged past the $100 a barrel mark
European energy markets have surged higher this morning as Russia extended its military campaign overnight and launched an invasion of Ukraine. Crude oil markets have surged past the $100 a barrel mark and Brent is trading this morning at $104.09, up by $7.12 in early trading. The UK gas market, along with all other major European markets, has opened with huge gains and significant volatility. The front month March contract has traded up to 285.00p and a low point of 257.00p in the last hour, a spread of 28.00. Summer 2022 is trading up by 65.00p per therm at 280.00p. Markets remain on edge with significant swings on prices across the curve.