It was another volatile session for the UK gas market yesterday
It was another volatile session for the UK gas market yesterday with some of the risk premium coming off the Winter 22 contract, but prices otherwise rising across the curve. Contracts for a September delivery rose 8.72p to settle at 370.20p but the Winter 22 contract fell by 7.51p to end the day at 470.33p. Six LNG deliveries are scheduled to dock at UK terminals by the end of the month. Data suggesting a further three could also land bolstering UK supply. High temperatures continue to constrain UK to Belgium export capacity by 10.5 MCM a day. Despite the interconnector issues, the UK grid remained undersupplied for most of Wednesday.
Carbon EUAs recovered some more of the premium lost last week
GB baseload futures at the front of the curve settled mixed on Wednesday with September remaining flat at £351.50/MWh. The winter contract eased by £4.00/MWh having set a record high in the previous session. Carbon EUAs recovered some more of the premium lost last week as the spot moved to €83.43 per tonne, up €1.80 per tonne. Solar output is expected to increase going into the weekend and could counter an expected fall in wind generation, but the prompt still posted gains yesterday. Baseload for the day ahead settled at £259.74/MWh, up £5.68/MWh.
At the close, Brent for delivery for October was down $3.76
A volatile session ended with crude oil prices falling significantly across the curve yesterday. At the close, Brent for delivery for October was down $3.76 at $96.78 a barrel. US crude oil and gasoline inventories saw an increase in stocks in excess of expectation yesterday, with US crude reserves rising by 4.47m barrels. Saudi Arabia and the UAE, OPEC members with the largest spare capacity agreed to increase production, but only by an additional 0.1m barrels a day. A strengthening US dollar is also making oil more expensive for buyers with other currencies.
Crude oil prices have traded in a tight range this morning
Crude oil prices have traded in a tight range this morning with Brent slightly higher at $97.10 a barrel after falling by over seven dollars a barrel in the previous three sessions. In the gas markets, near futures are edging lower apart from the September which is showing a gain of 2.66p this morning. The winter contract is 6.33p down at 459.35p. Prompt prices have opened firmer wit the spot last exchanging at 315.00p. The National Grid have forecasted an increase in UK gas demand for today at 204MCM and supplies are trailing by 5MCM while LNG send out is healthy at 35MCM.