NBP futures had opened firmer on Thursday
The EU leaders with Mr. Biden agreed a further round of sanctions on Russia yesterday but the EU were divided on whether to impact Russia’s gas and oil exports. In other talks the U.S. President said U.S. LNG exports to Europe could be increased to lessen the block’s reliance on Russian natural gas. NBP futures had opened firmer on Thursday and the front month peaked at 305.00p before falling back to close at 264.82p, down 12.68p day on day. Prompt prices shifted direction too as Norwegian imports through the Langeled feeder stepped up on the day. The supply outlook is looking positive for the UK, which is expecting a further 12 cargoes of LNG over the next two weeks. LNG deliveries to the UK for Quarter 1 could hit 78 this year, almost 60% higher than for the same period last year.
The front month declined late into the session
The baseload power curve followed the direction of the NBP futures market on Thursday as early gains were reversed later in the session. The front month declined late into the session and settled £14.40/MWh lower on the day. Carbon EUAs partially reversed some of the previous session’s losses and the spot closed at €78.51 per tonne. Wind generation put in a poor performance in the UK power stack on Thursday and is forecast to stay below 1.0GW again today. This coupled with forecasts for demand in rise has tightened supply margins going into the weekend and the day ahead product settled £16.90/MWh higher yesterday.
Crude prices eased on Thursday
Crude prices eased on Thursday after the EU leaders failed to agree to impose an embargo on Russian energy. The U.S. has already banned imports of Russian gas and oil, but the issue is not as straight forward for the EU because many of its members reliance on Russian natural gas and oil. The U.S. President offered to increase the U.S. supply of LNG to Europe, and this is to be negotiated at further meetings. Other positive news for the market came after reports that the Caspian Pipeline Consortium could resume transporting crude oil, albeit with restrictions. The pipeline was damage by a storm in the Black sea and was originally thought to be out of action for a month or more.
U.S. President sealed a deal with the EU to supply more LNG to the Block
The news that the U.S. President sealed a deal with the EU to supply more LNG to the Block was welcomed by the market and natural gas futures on the NBP opened lower this morning. Latest trades have seen contracts move off the early lows as April last traded at 257.99p, down 6.83p from last night’s close. Prompt prices are still to get of the marks today, but the GB gas system forecast to run 8MCM long against today’s demand of 255MCM. Norwegian imports through Langeled have increased to 68MCM this morning and should give traders some comfort. The May contract for Brent is 29 cents a barrel down at $118.74 a barrel.