NBP futures moved sharply higher yesterday
European energy prices were driven higher by mounting uncertainty over Russian gas supplies and concerns for French nuclear availability yesterday. Pipeline flows from Russia through the Nord Stream 1 have been curtailed due to compressors being held up because of sanctions Gazprom have said, and with maintenance on the pipeline scheduled for 11-July, the markets have been pricing in risk premium. NBP futures moved sharply higher yesterday but a late decline limited gains to the near curve on the day. The July contract expired on ICE yesterday and settled 7.37p higher at 174.12p, further out, the winter contract finished at 358.94p gaining 21.89p. Lower than forecast wind generation pushed up GB gas demand which propped up the NBP prompt.
GB baseload futures settled higher for a second session yesterday
GB baseload futures settled higher for a second session yesterday, as energy prices across Europe edged higher in response to Russian gas supply concerns and French nuclear supplies. Available capacity for the French nuclear fleet is 31.7GW for next week which is well below norms according to RTE, the French grid operator. Near GB baseload futures settled an average of £11.00/MWh higher yesterday. Baseload for the day ahead rose sharply as forecasts for wind generation were revised lower. The contract settled at £258.71/MWh, the highest daily value for the month as wind generation is expected to fall by 75.0% for Thursday.
After three days of gains the crude oil markets changed tack on Wednesday
After three days of gains the crude oil markets changed tack on Wednesday after an increase was reported in U.S. gasoline and distillate stocks while concerns of slowing global economic growth countered tight supply woes. The Energy Information Administration cooled the markets yesterday with its weekly inventory data which reported a rise in both gasoline and distillate stocks in the States. While crude oil stocks were lower, refining activity was increased last week. A stronger dollar also contributed to the downside in crude oil prices yesterday. OPEC commenced a two-day meeting on Wednesday, and it is widely expected the group will not deviate from the current production targets.
Prompt prices are mixed this morning
August has assumed front month status for the NBP on ICE and the contract has opened firmer this morning although the latest trade of 251.29p, is down from the morning high of 255.64p. September has been slow to trade but the winter is at the higher end of its trading range at 367.00p. Prompt prices are mixed this morning, the spot is down 1.45p in response to a long gas system but the day ahead has moved 3.00p higher. In the crude oil markets, it’s the last day of trading for the August contract for Brent and the markets are relatively flat. Brent for August delivery last exchanged at $116.40, which is up 14 cents a barrel.