UK gas market made a concerted effort to keep prices going up
The UK gas market made a concerted effort to keep prices going up and the first trades of the day came in higher than the previous settlement. The push higher was not sustained with only the two front months seeing any significant level of trading. Prices across the curve turned lower in the late morning as it became apparent that only the US would impose a full ban on Russian oil and natural gas products. European countries which rely heavily on imports from Russia were excluded from this action. The front month contract reacted to his development by shedding 89.00p and traded at some 350.00p lower than the high on Monday. These losses narrowed later on and overall just over 40.00p came out of prices.
GB baseload power market experienced another turbulent day
The GB baseload power market experienced another turbulent day of trading as prices plummeted in the middle part of the session. The market did recover a large amount of the losses but overall contracts finished lower than their previous settlement. The losses, on the power market came as the US announced further energy based sanctions against the Russian Federation. Baseload futures out to Winter shed a modest £5.40/MWh on average with long dated contracts down by £17.502/MWh. The power prompt declined by £50.00 but markets remain elevated, nonetheless.
Global crude oil contracts have posted significant gains
Global crude oil contracts have posted significant gains in five of the last six sessions as the market remains in turmoil over the prospect of Russian crude oil production being locked out of the global supply chain. In a significant development the US President Joe Biden announced that the US would no longer allow imports of US crude oil or natural gas. In a crucial development Joe Biden acknowledged that many European allies were not in a position to follow suit given the scale of domestic US crude oil production. The UK government followed suit in relation to oil but kept options open in relation to natural gas. Crude traded firmer throughout the day with the April Brent contract settling at $127.98.
Europe has secured enough LNG supplies to see it through to the end of Winter
In a significant development overnight the EU Commission President Ursula von de Leyden announced that Europe had secured enough LNG supplies to see it through to the end of Winter without Russian gas. Gas markets across Europe have welcomed this news and prices are easing across all markets. The UK NBP has opened with a 100.00p fall on the front month and this was a staggering 408.00p lower than its highest traded price from last Monday. Other contracts across the curve are down by between 30.00p and 40.00p in light trading. Crude oil markets are also in decline as the market digests the latest oil related sanctions on Russia. Brent is priced at $124.72.