Early losses were reversed over the morning
An undersupplied GB gas system provided support to prompt and near futures on the NBP on Tuesday. Early losses were reversed over the morning as supply concerns grew. Planned maintenance works limited imports through the Langeled feeder to around 10MCM yesterday and while annual maintenance on the BBL interconnector to the Netherlands prevented exports this did cap the upside to the prompt. The spot and day ahead products settled 15.85p and 17.20p higher respectively. Near curve contracts were lifted by the renewed supply concerns and October settled 17.69p up at 365.25p.
GB baseload futures settled higher yesterday
GB baseload futures settled higher yesterday, tracking the gains on the NBP curve. The front month, October, settled £21.25/MWh up at £343.65/MWh, while the winter contract closed at £494.00/MWh, adding £18.50/MWh on the day. Carbon prices reversed some of the gains from Monday yesterday with the spot for EUAs closing at €69.35 per tonne. Prompt prices also firmed yesterday with poor wind generation and gains to the NBP prompt providing the support. GB baseload for the day ahead settled £3.75/MWh up at £344.73/MWh.
Oil prices settled marginally lower on Tuesday
Oil prices settled marginally lower on Tuesday, taking direction from the prospect of rising US interest rates following the publication of a worse than expected US inflation report. The report highlighted the rapid increase in US inflation during August despite efforts by the policy makers to ease pressure. Brent crude shed 83 cent to end the day at $93.17 a barrel while WTI settled at $87.20 a barrel, a decrease of 22 cents. A strong US dollar added further downward pressure to the oil market. Despite the bearish indicators OPEC’s forecast for a 3.1% increase in global oil demand growth in the next two years remains unchanged.
NBP futures have firmed this morning
NBP futures have firmed this morning with the front month 19.40p up in early trading. Similar gains have been posted by the remaining winter months of this year. Prompt prices are also rising with the day ahead product 42.75p up on yesterday’s close. Today’s gas demand in the UK is 209MCM and supplies are balanced. Ursula von der Leyen addressed the Union this morning and talked of a gas price cap, reform of the electricity market and taxing profits on electricity producers. In the oil markets, Brent is 34 cents a barrel up at $93.51 a barrel.