LNG flows remains stable and strong and at no stage did the UK system fall into deficit
An outage at the Troll gas field in Norway allowed the UK gas market to recover some of the premium lost in the previous session. The unplanned outage was announced by the operator Gassco but there were no further details released as to the nature or expected duration of the issue. There was a slight reduction in flows via the Langeled pipeline, but this was more to do with lower demand than the interruption. LNG flows remains stable and strong and at no stage did the UK system fall into deficit. Price movement on the curve was all upward with contracts finishing just over 7.00p above the previous settlement. Trading was brisk on the front month April contract with 7,770 lots going through and the contract settling at 233.60p, up by 8.29p.
GB baseload curve contracts rebounded in line with NBP gas contracts
GB baseload curve contracts rebounded in line with NBP gas contracts although not all of the recently shed premium was recovered. An unplanned gas outage at the Troll field supported the gas market and these gains fen into baseload power. Power contracts were also impacted by gains in the EUA carbon market where allowances increased by €1.17 per tonne. The front month April baseload contract firmed by £6.00 to close at £209.50/MWh. All other contract out to Winter were up by £6.00/MWh on average. The spot price firmed by just over £3.00/MWh as the outlook for renewables disimproved.
At market settlement Brent was priced at $115.48
Crude oil markets broke a three-session losing streak yesterday as the market seemed to stall following gains in excess of $17.00 in the previous days. The market appears to have hit some resistance at the $116.00 mark, but it remains to be seen if this will hold pending new sanctions on Russian crude oil production. The EU remains divided on this issue with Germany in particular resisting the move and is more in favour of encouraging Saudi Arabia and the UAE to boost supplies. The front month Brent crude contract for April delivery peaked at $119.48 and fell to an intra-day low of $112.64 in a lively session. At market settlement Brent was priced at $115.48, down by 14 cents.
The outage at the Troll gas field remains a factor
The gas market has continued from where it left off yesterday with prices at the front of the curve increasing. The outage at the Troll gas field remains a factor and is providing support to the curve. The front month April and May contracts are trading at 245.00p/therm and 246.05p/therm having increased by 11.40p and 10.33p respectively from last night’s close. The front Summer has yet to trade, and bid/offer spreads would suggest similar increases on this contract. UK gas supply is on par with recent days as forecast remain blow the seasonal norm and the system is running with a minor surplus of 5MCM. Crude oil markets are trending higher this morning with prices up by $2.50.