UK gas futures experienced another volatile session on Monday
UK gas futures experienced another volatile session on Monday, with the front month contract displaying a spread of 76.40p between its high and low before eventually settling 1.70p up on the day at 283.34p per therm. Remaining NBP future products posted slight gains as the market remains uncertain, the 2023 calendar year contract gained 7.97p to settle at 414.31 pence per therm. The prompt market moved marginally lower yesterday, with the Within day and Day ahead contract settling at 163.05p and 160.05p respectively. Healthy supply has supported the downward momentum, with seven LNG cargoes arriving into the UK so far in October and another ten expected before the end of the month.
Losses in the EUA carbon market were solid
GB baseload contracts displayed another mixed session on Monday, as the front month fell back, contracts further along the curve pushed higher. Baseload for delivery in November shed £12.50/MWh during the session and eventually settled at £484.50/MWh. Risk premiums expanded in the Q1-23 contract which gained £40.25/MWh and settled at £730.25/MWh. Upward momentum returned to the GB baseload day ahead contract, gaining £74.85/MWh to settle at £199.77/MWh as weather fundamentals supported the uptick in prices. Losses in the EUA carbon market were solid, with the spot contract settling at €66.40 a tonne, down €3.01.
Brent crude prices slipped modestly lower during Monday’s session
Brent crude prices slipped modestly lower during Monday’s session, as global recession fears creeped back into the market following OPEC+ curtailment announcement last week. The oil cartel have failed to meet production targets in recent months, therefore it is unclear what impact the new restrictions will have on oil inventories. Strict Covid-19 lockdowns in China continue to raise concerns in the market, as demand slows down in the oil hungry nation. Brent crude for delivery in December lost $1.73 during the session to settle at $96.19 a barrel while the WTI front month settled at $91.13 a barrel.
UK near curve gas prices have opened firmer this morning
UK near curve gas prices have opened firmer this morning, with the front month currently trading at 298.00p up 14.66p per therm, while gas for delivery in December is currently trading at 452.00p up 15.08p from yesterday’s settlement. Remaining UK gas future contracts are yet to trade. The NBP day ahead contract is down 15.95p at 176.00 pence per therm, finding support in a marginally oversupplied system this morning. Brent crude prices have continue on from yesterday’s downward momentum, with the front month contract currently trading at $93.85 a barrel, down $2.34.