UK gas prices maintained their downward trajectory yesterday
UK gas prices maintained their downward trajectory yesterday, despite low liquid on the market due to the UK Bank Holiday. For the third consecutive session the front month contract released risk premium and eventually settled at 282.41p per therm its lowest level since late March. Winter 22 also shed 10.62p to settle at 466.51 pence per therm. Further along the curve, downward moment was more subdued, with Summer 24 settling marginally lower by less than 1.00p on the day at 241.53p. The recent market momentum has indicated risk premiums along further dated contracts have failed to release heavy premiums at the same pace as near delivery contracts.
Losses on the EUA carbon market were modest
For the third consecutive session GB baseload prices continued to release risk premium and end the session lower. Near curve contracts took the brunt of the downward sentiment, with contracts for the remaining months of the year shedding £32.25/MW on average. The front month contract October settled at £280.85/MWh, down £41.55/MWh over the last five days of trading. Losses on the EUA carbon market were modest during Monday’s session, with the Dec 22 contract shedding €2.17 a tonne to settle at €71.10. The corresponding UK contract also shed £1.69 to end the day at £
74.88 a tonne.
Crude oil market did not stray too far from its previous settlement
The crude oil market did not stray too far from its previous settlement during Monday’s session, as the commodity continued to be torn between global recession fears and concerns over tight supplies on the other hand. Brent crude front month contract settled at $91.93 a barrel, up 65 cents on the day. There is broadening concerns that global oil demand momentum is weakening, particularly in China the world’s biggest importer. However, with EU sanctions on seaborne Russian crude imports set to kick in during December and with OPEC+ cutting supply despite prevailing tight availability the oil market has managed to limit any substantial losses. WTI front month contract also settled marginally higher yesterday, to end the day at $85.71 a barrel.
Liquidity remains thin with all other contracts yet to trade
The UK gas market has failed to hang onto yesterday’s downward sentiment this morning, with the front month contract last trading at 288.00p gaining 5.59 pence per therm from the previous session. The Q4-22 contract is also up fractionally by 1.90p at 428.99 pence. However liquidity remains thin with all other contracts yet to trade. Gas demand in the UK is forecast at 238MCM, with 92MCM being exported to mainland Europe. The system is relatively balanced with healthy supplies from Norway and robust LNG send out. Brent crude prices have continued where they left off on Monday, with the front month contract trading at $92.74 a barrel, up 74 cents.