Prompt prices settled mixed yesterday
Russia’s decision to apply retaliatory sanctions on Gazprom’s former subsidiary, Gazprom Germania, among other international companies spooked the gas markets across Europe yesterday. Near futures on the NBP curve opened up to 20.00p higher and gains were extended into the session. The lead month, June, peaked at 196.85p, over 57.00p above the previous close. However, the upward momentum was not sustained, and prices fell back in the afternoon session as June settled at 175.55p, up 35.81p day on day. Prompt prices settled mixed yesterday with the spot and day ahead easing in response to forecasts for lower demand while the longer prompt looked to gains at the near curve.
Near contracts on the GB baseload power curve settled higher
Near contracts on the GB baseload power curve settled higher for a third day running after sanctions imposed by Russia on international companies caused energy prices across Europe to rise yesterday. The June contract settled at £177.50/MWh, up £13.30/MWh while the winter contract added £17.50/MWh to close at £254.50/MWh yesterday. Wind generation was forecast to increase going into the weekend, but this failed to quell gains for the power prompt market. Baseload for the day ahead settled at £87.28/MWh, up £10.82/MWh or 14.2% from the previous close.
Crude oil prices flip-flopped on Thursday
Crude oil prices flip-flopped on Thursday as the market struggled to find direction after Wednesday’s strong gains. Brent settled 18 cents a barrel down on the day while West Texas Intermediate added 43 cents to settle at $106.13 a barrel. The U.S. dollar continues to strengthen and is currently near a twenty year high, which is pressuring crude oil prices. Meanwhile the potential for the EU embargo on Russian oil continues to provide support. The International Energy Agency have reported that OPEC+ output is rising steadily and along with the global slowdown should compensate for lower Russian supplies.
The GB gas system continues to be well supplied this morning
The GB gas system continues to be well supplied this morning and demand for today is pitched at 216MCM. Supplies are forecast long by 8MCM, and the prompt should open lower although no trades have been completed thus far. Trading on the NBP futures market has opened softer and near months are around 20.00p down on last nights’ close. Seasonal contracts have yet to post any deals, but the bid/ offer spreads are suggesting similar declines for the front winter. Brent has firmed in early trading with the latest trade for the global benchmark going through at $108.64 a barrel.
13 May 2022
