Norwegian gas and oil workers ended the industrial action

There were wild intra-day swings in prices

The threatened strike action by Norwegian offshore gas and oil rig workers commenced yesterday and continued to push up prompt and near futures on the NBP.  Industrial action was to escalate over the week and could have restricted Norway’s gas exports by around 50.0%, however, the government stepped in late yesterday and the rig workers are to return to work. Again, there were wild intra-day swings in prices as near futures yielded much of the earlier gains.  The front month, August which peaked at 317.52p yesterday, settled at 290.43p, up 8.19p day on day.  Gains on the prompt were sustained for the most part with the spot and day ahead closing over 30.00p higher.

 A fall in Carbon EUAs also helped soften the baseload power curve late on

An increase in the forecast for wind generation for Wednesday weighed on the day ahead contract for baseload power yesterday.  The contract had made a steep step up on Monday and yesterday’s decline was modest in comparison as the product settled at £214.06/MWh, down £12.04/MWh.GB baseload futures traded in a similar vein to natural gas futures on the NBP curve.  There were late declines to near contracts which left the curve posting modest gains, while a fall in Carbon EUAs also helped soften the baseload power curve late on.

 Crude oil prices plummeted on Tuesday

Crude oil prices plummeted on Tuesday as growing recession fears combined with concerns of lower demand in China yesterday to eclipse production woes from striking rig workers in Norway.  News that Shanghai is to mass test 25 million residents for Covid-19 over a three-day period shook the markets as fears of further lockdowns would deconstruct demand in the world’s second largest oil consumer.  Strike action by Norway’s offshore rig workers began on Tuesday and was scheduled to escalate over the week before the Norwegian government intervened late yesterday.  Brent settled $10.73 a barrel down at $102.77 a barrel.

The NBP gas market have opened with sharp declines

With the news that the Norwegian gas and oil workers ended the industrial action near futures on the NBP gas market have opened with sharp declines. The August contract traded down to 238.28p but last trade was at 260.00, down 30.43p on last nights close.  Contracts past the first few months have yet to trade and losses look to be more modest based on the bid/ offer spreads. Trading on the prompt has been thin but the spot is down by around 60.00p, last trading at 200.00p.  After falling by over ten dollars a barrel yesterday, the September contract for Brent has recovered $1.16 this morning to last trade at $103.93 a barrel.

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