Prompt gas prices eased over the course of the day
Prompt gas prices eased over the course of the day yesterday with both the spot and day ahead contract settling at 84.01p and 82.50p down by 6.04p and 7.55p, respectively. The premium between the gas prompt and futures market increased as for the second consecutive session NBP near curve prices firmed once again. Unlike Monday the uptick in prices was seen in both near and far curve contracts. The front month June contract gained 12.97p during the session to settle at 185.23p per therm the Winter-22 contract gained 10.75p over the course of the day to close at 246.30p/therm. UK gas demand remained stable on the day at 225MCM, and the early minor deficit became a surplus by mid-morning. Interconnector exports to the continent remain strong at 89MCM.
GB baseload power futures pushed higher
GB baseload power futures pushed higher during yesterday’s session as prices firmed once again on increases in the NBP gas market and EUA carbon contracts also posted strong gains. The gains in the EUA market came about as the EU considered new arrangements for the EU ETS. Similar movement was present in UKAs. Baseload for the day ahead out turned higher for the second consecutive session at £119.72/MWh While the front month edged up by £5.37/MWh to settle at £183.75/MWh. The remaining future contracts gained £6.44/MWh on average.
Crude oil prices hit an eight-week intraday high
Crude oil prices hit an eight-week intraday high during Tuesday’s session, peaking at $115.99 a barrel before settling at $111.93. The market took direction from the continuous rise in geopolitical tension between Russia and Europe as Sweden and Finland’s move towards joining NATO. Support was also found in OPEC+ latest market figures, which outlined a 9% drop in Russian crude output in April. However, demand concerns from China, the world’s second largest consumer of oil curtailed the upward sentiment. The WTI closed at $112.40, 47 cents above Brent for the first time in two years.
Crude oil markets have opened in positive territory this morning
Crude oil markets have opened in positive territory this morning, with the Brent crude contract trading at $113.26 a barrel. US inventory data published later today is likely to feed into the market gains as forecast data indicates a drop in oil stocks. NBP futures contracts have continued to gain value, however the gains are modest compared to yesterday. June the front month is up 3.27p per therm at 188.50 while Winter 22 is yet to trade. The UK system is currently 14MCM oversupplied due to strong supply flows of 237MCM.