The early gains to the near curve were reversed later in the session
Forecasts for mild weather along with robust supplies of LNG pressured prompt prices at the NBP on Friday while the early gains to the near curve were reversed later in the session. Temperatures in northern Europe are expected to rise up to 4°C above the norm this week and should dampen gas demand while the UK is expecting nine cargoes of LNG over the next ten days. The spot and day ahead products fell by around 24.00p on Friday to close at 222.05p and 221.25p respectively. The front month, April, closed at 246.00p, falling 3.78p but over the week the contract was 65.05p lower.
GB baseload futures moved in line with counterparts on the NBP near curve on Friday
GB baseload futures moved in line with counterparts on the NBP near curve on Friday. Trading for the most part was confined to the front month and front two seasons as April settled with a loss of £6.20/MWh, closing at £220.00/MWh. Carbon EUAs shed €1.10 per tonne on Friday as the spot closed at €78.28 per tonne. Wind generation is forecast to drop below 2.0GW on Monday and the day ahead product responded by moving 5.4% higher. This is well below the average for the last week and is likely to remain below average for the next week or two.
Crude oil prices settled higher on Friday as hopes of a ceasefire fade
Crude oil prices settled higher on Friday as hopes of a ceasefire fade. As the Russian shelling bombardment of key Ukrainian cities continued, the West is considering imposing another wave of sanctions on Russia. Crude oil prices hit a 14-year high almost two weeks ago and the volatility in the market since has encouraged investors to cash-out. Global supplies are tighter with no buyers for Russian crude oil and output from OPEC+ group for February was reported below targets. At the close, Brent settled $1.29 a barrel higher to close at $107.93 a barrel. West Texas Intermediate settled at $104.70 up $1.72 a barrel.
Crude oil prices have opened stronger this morning
Crude oil prices have opened stronger this morning ahead of a meeting of EU foreign ministers where on the agenda for discussion is new sanctions on Russia. Some ministers are pushing for a full embargo on Russian energy but with many EU nations, including Germany, relying on imports of Russian gas this might be a step too far. Brent last traded at $111.67 a barrel, up $3.74 a barrel. In the UK gas market, the front month opened lower and traded down to 225.11p but last trade for April was 240.00p. Trading on the prompt is thin but the day ahead is 8.75p higher at 230.00p.