NBP futures contracts out to the winter continued to ease lower on Monday
NBP futures contracts out to the winter continued to ease lower on Monday with the front month posting a loss of 15.53p to close at 213.01p, the lowest for the contract since before the Russian invasion of the Ukraine. Contracts past the winter settled an average of 5.00p higher with concerns that EU may increase sanctions to include Russian oil giving some support. Prompt prices shed premium again yesterday as warmer temperatures forecast into May are expected to quell gas demand in the UK. The spot and day ahead products closed near 195.00p with both contracts shedding 11.00p on the day. The GB gas system remained comfortable yesterday with LNG send out close to 95MCM.
Carbon EUAs contracts out to 2024 shed around 2.8% on Monday
The GB baseload power curve echoed movement on the NBP curve yesterday. Near curve contracts settled an average of £7.70/MWh lower while contracts past the winter settled with gains of around £4.40/MWh. Carbon EUAs contracts out to 2024 shed around 2.8% on Monday as the spot closed at €77.58, down €2.23 per tonne. Wind generation out-turned higher than original forecasts yesterday but had little effect on the day ahead price which closed slightly lower. Wind generation exceeded 12.5GW on Monday but is expected to reduce to 7.5GW for Tuesday and fall further through the week.
Crude oil prices started the week softer
Crude oil prices started the week softer with Brent, the global benchmark down by over two dollars a barrel by mid-morning on Monday. The losses were extended through the session as the June contract tumbled below the $100 a barrel marker before settling at $98.48 a barrel, down $4.30 a barrel from Friday’s close. The strategic release of oil reserves coordinated by the IEA along with the U.S. helped soften prices yesterday while China’s demand is down due to restrictions to control rising new Covid-19 cases in and around Shanghai. West Texas Intermediate for May delivery settled at $94.29 a barrel, down $3.97 a barrel.
The crude oil markets have rebounded this morning
The crude oil markets have rebounded this morning with nearly all the lost premium from Monday being clawed back in early trading. The EU is considering extending sanctions to cover Russian oil, while OPEC has warned that they could not increase output to compensate for the loss of Russian supply. Meanwhile there are reports that some parts of Shanghai have relaxed restrictions after two weeks of lockdowns easing concerns of a prolonged disruption to demand in the world’s second largest oil consuming nation. Closer to home, the gas markets have opened firmer with the May contract last trading at 220.99p, up 7.98p on Monday’s close.