NBP prompt prices posted sharp losses on the day

The NBP gas market opened with sharp losses yesterday

The NBP gas market opened with sharp losses yesterday following the news from Tuesday evening that the Norwegian government had intervened in the industrial action by gas and oil rig workers.  While the news was welcomed, the underlying concern of Russian supplies remained, and the early losses were reversed over the day for the most part.  The August and September contracts were the only near curve contracts to settled lower with August closing 14.06p down at 276.37p.  NBP prompt prices posted sharp losses on the day with the spot and day ahead almost 90.00p down with revised forecasts for increased wind generation expected to ease GB gas demand for the rest of the week.

Carbon EUAs averaged increase of just over a euro per tonne

GB baseload futures followed a similar arc to the near futures on the NBP yesterday with early losses being recovered through the session.  An increase in carbon added to the upside yesterday as the front month on the baseload curve settled £1.00/MWh higher at £267.00/MWh.  Carbon EUAs averaged increase of just over a euro per tonne. Wind generation is now forecast to remain above recent averages for the rest of the week, and this pressured prompt prices yesterday.  Baseload for the day ahead shed 12.2% or £26.06/MWh to close at £188.00/MWh yesterday.

Brent staged a brief recovery from Tuesday’s heavy losses

Brent staged a brief recovery from Tuesday’s heavy losses yesterday but failed to hold up under the pressure of growing recession worries and a near 20-year high dollar.  The U.S. Fed has aggressively raised interest rates and is expected to continue this policy in an attempt to rein in inflation Stateside.  This has sent the dollar to near 20-year highs against other currencies and almost on a par to the euro.  A strong greenback makes dollar traded commodities more expensive in other currencies.  U.S. inventory data was delayed this week owing to Monday’s July 4th holiday and the report is due to be issued on Thursday afternoon.  At the close, the September contract for Brent was down $2.08 to $100.69 a barrel.

Crude oil prices are flipping between losses and gains

The prompt market has been slow to get going this morning may open firmer based on the bid and offer spreads.  GB gas demand for today is pitched a touch higher than expected at 219MCM and supplies are trailing by 5MCM. Only the front month of the NBP curve, August, has recorded trades and is 23.62p up on last night’s close at 299.99p.  Crude oil prices are flipping between losses and gains with brent dropping below the $100 a barrel marker earlier but is currently at $100.51 a barrel, down 18 cents. The Energy Information Administration are due to publish this week’s U.S. crude oil data report later today.

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