Early losses to near NBP futures were reversed later
The early losses to near NBP futures were reversed later in the session yesterday as the market changed tack on supply concerns. September had traded down by over 14.00p but settled at 357.24, 2.10p higher. Contracts further along the curve notably the summer 2023 and winter 2023 contracts recorded significant gains and settled 14.43p and 18.21p higher respectively. Low wind generation and the unplanned outage at the Sleipner Field which curtailed Norwegian flows, provided support to the prompt as the spot and day ahead products averaged gains of 12.60p.
The UK baseload contract for Winter 2022 slipped for the third day
The UK baseload contract for Winter 2022 slipped for the third day in a row yesterday. In line with recent movements, the decline was minimal. The September contract remained stable posting only a slight gain of £2/MWh. Carbon EUAs gained roughly €1.60 a tonne across the curve, with the Dec-22 contract settling €85.93. A day on day increase of 1.2 GW in the forecast wind generation helped cap the UK Day Ahead contract which slipped £5.50 to settle £276.50/MWh yesterday. EFD’s Hartlepool nuclear Reactor 1 is scheduled to return to service on August 12 following off-load refueling.
It was a choppy day in the crude oil markets
It was a choppy day in the crude oil markets with news emerging that Ukraine had halted oil flows to Germany and Poland wrestling with concerns for slowing demand. Ukraine suspended flows through the Druzhba pipeline which transports oil from Russia to parts of central Europe because it was not receiving transit fees, apparently due to sanctions on Moscow. Prices came under pressure earlier when the EU pushed for revival of talks between Iran and the U.S. on Iran’s nuclear program. A deal between the two sides could release up to 1m barrels per day of Iranian oil to the market. At the close, Brent was 34 cents lower at $96.31 a barrel, while WTI settled at $90.50 a barrel, down 26 cents.
Near NBP curve futures have opened stronger
Once again, the UK gas market has opened with volatile movements this morning. The spot has gained 14.13p on yesterday’s close of 284.88p as the UK gas system has opened short by some 14.7 MCM, however, the day ahead is trading at 273.00p this morning, down 11.88p on yesterday’s close. Near NBP curve futures have also opened stronger, with September trading up 22.71p at 379.95p and October trading up 19.76p at 426.00p a therm. Brent has opened mimicking yesterday’s downward trend with contracts for an October delivery down $0.33 at $96.00 a barrel.