Carbon EUAs fell by almost 6.0% on the day

Gas prices across Europe surged on opening yesterday

Gas prices across Europe surged on opening yesterday after the announcement that Nord Stream 1 is to close for three days from 31 August for maintenance according to Gazprom.  Russian gas supplies through the pipeline were already down at 20% of capacity and risk premium was well built into prices. New record highs were set across European gas hubs including the GB market with the front winter contract on the NBP peaking at 719.21p intra-day.  There were wild swings in prices through the afternoon and the winter contract traded down to 654.00p before settling at 676.73p, a gain of 69.35p on Friday’s close.  Prompt prices increased sharply, pulled higher by the gains on the near curve and supply issues on Norwegian feeds as the GB gas system ran with a deficit yesterday.

The GB baseload futures market was driven higher yesterday

The GB baseload futures market was driven higher yesterday after gas markets across Europe opened with sharp gains.  The winter-22 contract traded into new territory and settled at a record close of £705.50/MWh. The contract gained £43.50/MWh on the day and this was close to average gain for the near curve on the day. Baseload for the day ahead settled 31.7% higher or £121.42/MWh up on Monday in response to gains in the NBP prompt and forecasts for low wind generation.  Carbon EUAs fell by almost 6.0% on the day with the spot settling at €91.75 per tonne.

Crude oil prices settled lower on Monday

Crude oil prices settled lower on Monday with a strong performing greenback and fears of an economic slowdown weighing on prices.  The dollar has been buoyed by the U.S. Fed’s aggressive interest rate hikes of late and was almost at parity to the euro yesterday.  A strong dollar makes dollar traded commodities more expensive to other currency holders. Late in the session, crude oil prices received support when Saudi Arabia’s Energy Minister said OPEC+ could cut oil production in response to falling prices driven by fears of a global slowdown in demand.  Brent settled at $96.48, down 24 cents a barrel.

The gas markets seem a little calmer this morning

The gas markets seem a little calmer this morning with near months trading between 3.72p and 9.80p down on last night’s close.  The September contract last traded at 520.00p while October has gone through at 590.00p. The front winter has yet to trade but the contract for summer-23 is 3.74p down.  The GB gas system is better shape this morning and supplies are forecast 13MCM long against todays demand of 202MCM.  Brent is up $1.50 a barrel at $97.98 after the Saudi Arabia Energy Minister floated the idea of OPEC+ cutting output yesterday.

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