NBP futures settled close to the mid-point of the trading range yesterday
NBP futures settled close to the mid-point of the trading range yesterday as the May and June contracts closed almost 11.00p higher at 188.87p and 213.13p respectively. While planned maintenance works has curbed Norwegian imports, news of an unplanned outage at Kollsnes supported prompt and near curve months yesterday but prices fell back before the close. The prompt settled mixed on the day as the spot eased by 2.00p while the week ahead product gained 12.55p. Gassco, the Norwegian gas system operator posted that maintenance works will continue until the end of next week. The works could curb gas imports to the UK by up to 60MCM.
GB baseload power futures market settled higher on Thursday
The GB baseload power futures market settled higher on Thursday as the market looked to futures on the NBP for direction. The May and June contracts settled £6.50/MWh higher yesterday while the winter contract was marked £11.20/MWh higher. Carbon EUAs surrendered most of the early losses to close slightly lower on the day. Baseload for the day ahead has been trending lower for the last fortnight and settled down again yesterday. Declines have been gradual with a further £11.13/MWh fall yesterday bringing the total loss to almost £64.00/MWh over the last two weeks.
Crude oil markets settled higher on Thursday
The crude oil markets settled higher on Thursday as the EU continues to mull over the Russian oil ban while supplies in Libya remain shut-in. As Russia steps up the bombardment of Mariupol the possibility of a ban on Russian oil imports by the EU is looking more likely although it may not be imposed until later in the year as Germany is still assessing its options. Prices fell back from their highs after the U.S. Treasury Secretary, Janet Yellen, called for caution from the EU if applying a complete ban as this could cause a spike in crude oil prices. At the close, Brent gained $1.53 a barrel to settle at $108.33 a barrel.
Fall in GB gas demand this morning
The mild temperatures and an increase in wind generation has led to a fall in GB gas demand this morning with today’s demand forecast at 235MCM. Supplies have started short for the first time this week as maintenance works curb Norwegian imports. Langeled flows are nominated at just 10MCM for today, however, LNG send out should exceed 100MCM with a strong showing from both Milford Haven and Isle of Grain facilities. NBP futures opened stronger with the May contract rising to 200.00p but the latest trade was at 185.50p which is down 3.37p from last night. Brent last traded $1.98 lower at $106.35 a barrel.