UK prompt prices slumped during Friday’s session
UK prompt prices slumped during Friday’s session, after testing March high’s earlier in the week. The day ahead contract settle at 263.00p/therm, down 52.00p/therm while the spot contract ended the day in similar territory at 262.00 pence per therm, down 52.05 pence. Near curve gas prices followed a comparable pattern, posting a second straight day of losses as European storage injections remain firm at approx. 68% fullness and LNG arrivals remain healthy. The front month September settled at 351.92p down 21.93 pence per therm while losses on the October contract also remained at a solid discount when compared to the TTF equivalent settling at 404.90 pence per therm down 18.95p.
Losses in the gas futures market fed into the downward sentiment in the GB baseload
Losses in the gas futures market fed into the downward sentiment in the GB baseload power market during Friday’s session. The August contract which expired on Friday dropped £17.50/MWh to settle at £282.50/MWh, while September closed at £338.50/MWh down £26.00/MWh from the previous session. An uptick in wind generation helped to ease pressure along the prompt, with the day ahead contract drifter lower to settle at £300/MWh, £25.40/MWh below the previous settlement.
Brent crude oil prices pushed higher during Friday’s session
Brent crude oil prices pushed higher during Friday’s session, as the market focuses on the upcoming OPEC+ meeting and the unlikely expectation that the group will increase production output or meet its current production targets. Brent crude for September delivery settled at $110.01 during its final day of trading, up $2.87 a barrel. WTI front month also extended gains, jumping $2.20 to end the session at $98.62 a barrel. Front month contracts have continued to trade at a premium to contracts further along the curve in recent months. The oil market also found support in the falling US dollar coupled with upward momentum in global equities on Friday.
Brent crude prices have slipped this morning
Brent crude prices have slipped this morning, after poor Chinese economic data added to concerns of a global slowdown in demand. Crude is currently trading at $103.01 a barrel, down $7 from Friday’s close. Near curve gas contracts have opened higher this morning, with September the front month currently trading at 361.47p while Winter-22 is yet to trade. NBP day ahead contact is at 281.00 pence per therm this morning, up 19.00p from Friday’s session. UK gas demand is currently at 195MCM, with Interconnector exports to Europe accounting for 75MCM.