Prompt prices remained steady on Tuesday
Prompt prices remained steady on Tuesday, despite lower Norwegian supplies on the day. Near curve contracts opened softer and extended losses through the session. Despite opening short, to a demand of 235 MCM the GB gas system balanced later in the day. Supplies through the Langeled feed increased to 65 MCM and this pressured prompt prices later with the spot closing at 123.15p. July opened roughly 10.00p down, but went on to close at 136.29p, down 14.38p on the day. Prices further out on the curve recorded more modest losses as the front winter 22 declined by 4.16p to 235.24p.
Carbon EUAs shed premium on the day
The GB baseload power curve weakened on Tuesday as the near curve contracts fell by an average of £6.60/MWh. The front month settled at £155.00/MWh while the winter contract closed at £239.50/MWh. Carbon EUAs also shed premium on the day as the spot closed at €80.58, down €1.18 per tonne. The baseload for the day ahead product also declined yesterday as forecasts for increased wind generation combined with higher temperatures for the rest of the week weighed. Wind generation is forecast at 5.0GW for Wednesday and to rise going into the weekend.
Crude oil prices resumed their upward trend
After a slight fall on Monday, crude oil prices resumed their upward trend yesterday as concerns of tight supplies underpin prices. The global benchmark, Brent settled $1.06 a barrel up at $120.57 a barrel while West Texas Intermediate closed at $119.41, up 91 cents a barrel. This is the highest settlement for the U.S. benchmark since the first week in March. The U.S. have said that there has been no progress on the Iran nuclear deal which has dimmed hopes of a return of Iranian oil to the market in the short term. The industry group, The American Petroleum Institute reported a surprise build in U.S. crude stocks last week which was at odds with market expectations. Focus will be on the official government data from the Energy Information Administration which will be released on Wednesday.
The spot and the day ahead have declined sharply
NBP gas prices on the prompt and curve have opened softer this morning. The spot and the day ahead have declined sharply by 28.15p and 17.30p respectively. The front month was 5.29p down in early trading while the winter contract has eased by 1.88p. The GB gas system is running long by 13 MCM as demand has dropped to 218 MCM due to wind generation displacing gas fired power stations in the power stack. Crude oil prices have continued to gain this morning as Brent has added over a dollar to last trade at $121.74 a barrel. Focus of the market will turn to the U.S. today for the release of the weekly inventory data.