The move lower in prices continued through the day
The front of the NBP gas futures curve responded to the announcement from Ursula von de Layen yesterday by opening over 100.00p lower. The EU commissioner declared that Europe had enough LNG supplies to see out this winter and would not be as reliant on Russian natural gas supplies for the winter ahead. The move lower in prices continued through the day with the April contract dipping to a low of 351.36p before settling a touch higher at 373.58p, but still falling 137.86p from Tuesday’s close. On Monday morning April set a new intra-day high of 800.00p for a futures price, and yesterday closed over 53% below that high demonstrating the extreme volatility in the markets. Contracts past the front summer displayed less liquidity and losses were more modest compared to the front of the curve.
GB Baseload power prices tumbled yesterday
GB Baseload power prices tumbled yesterday in response to the crash in gas futures on the NBP. As the Russian invasion of Ukraine enters the third week, the energy markets in Europe remain volatile, but Wednesday saw most of the premium added on Friday and Monday being eroded. At the close, April was £94.95/MWh down at £304.50/MWh. Baseload power for the day ahead settled £82.70/MWh down yesterday as demand is expected to ease leaving supply margins to widen. Wind generation will remain above recent averages and this also provided some relief to the prompt.
Brent settled $16.84 a barrel lower at $111.14 a barrel
Crude oil prices recorded the largest one-day loss in almost two years on Wednesday as Brent settled $16.84 a barrel lower at $111.14 a barrel. The move lower came after the previous day’s reaction to the White House move to ban Russian oil exports. Late on Tuesday the Ukrainian President Zelensky, said they are no longer pressing for membership of NATO and the market interpreted this as a sign the conflict may de-escalate. Crude oil prices then moved lower after the UAE’s ambassador to Washington tweeted The United Arab Emirates would support an increase on oil production by OPEC, however, the energy minister later said the UAE is committed to the OPEC+ agreement.
Crude oil prices have rebounded after shedding almost $17.00 a barrel yesterday
After yesterday’s crash in gas futures prices on the NBP near curve, the market has opened softer again. The April contract is down by almost 30.00p to 344.00p while the summer last traded at 331.00p, down 24.33p. The prompt market remains dormant but with the front of the curve opening softer and a lower demand forecast for today at 230MCM there should be weaker prices today. Crude oil prices have rebounded after shedding almost $17.00 a barrel yesterday, the latest exchange for Brent was done at $117.11 a barrel, up $5.97 a barrel on last night’s close.