Brent crude oil prices dipped across the curve yesterday

The volatility in the gas markets continued into Thursday

The volatility in the gas markets continued into Thursday with early trading on the near NBP curve at or just below Wednesday’s close.  The August contract drew much of the attention on the day as it was the last day of trading on the ICE trading platform.  A late sell off which was prompted by a decline across European gas hubs as Russian supplies were stable, saw the front months shed 54.03p and 49.08p over the last hour or so and August expired at 317.59p.  The winter settled at 470.20p, down 21.22p. News that Rough storage could require cushion gas injection next summer limited losses to the far curve and the summer contract settled 1.65p lower. Cushion gas is used to stabilize pressure and is not withdrawn for use. NBP prompt prices also recorded sharp losses on the day.

 Baseload power futures settled mixed on Thursday

Baseload power futures settled mixed on Thursday with the near curve tracking the NBP futures lower while the winter contract settled marginally up.  The August contract shed £28.25/MWh to close at £300.00/MWh. Higher clean spark spread for the winter and increases in carbon prevented losses and the contract settled £1.50/MWh up. Baseload for the day ahead eased yesterday as the declines on the NBP prompt countered forecasts for low wind generation on Friday. Wind generation is to be well below tomorrow and should average around 2.8GW.

 West Texas Intermediate prices were also under pressure

Apart from the front of the curve, Brent crude oil prices dipped across the curve yesterday on news that the Federal Reserve, eager to curb inflation, had increased the interest rate by a further 0.75%. The front month posted the only real gain with the contract for September delivery rising $0.52 to end at $107.14. Further out prices slipped by roughly 1.1% with the far end of the curve experiencing the greater fall. West Texas Intermediate prices were also under pressure with the September contract settling down $0.84 at $96.42 a barrel as late reports emerged that the U.S. economy contracted in the second quarter.

It has been a quiet start this morning on the near NBP curve

Following last night’s late flurry of activity on the near NBP curve, it’s been a quiet start this morning. The September contract has assumed front month status on the ICE platform and having traded down by almost 4.00p to 370.00p, the contract last traded at 380.00p and is now up 6.15p. The winter has yet to post a trade and the same can be said for the prompt this morning.  The GB gas system is comfortable, and demand is forecast at 208MCM, nominations for imports through the Langeled line is at 65MCM for today.  In the crude oil markets Brent is $2.06 up at $109.20 a barrel.

Read more carbon market news in our Insights section