NBP gas market reversed the trend of the previous 4 sessions
The NBP gas market reversed the trend of the previous 4 sessions posting gains across much of the curve yesterday. The UK system remained undersupplied throughout the day, as Langeled flows were reduced, and domestic production restricted by maintenance at the Teesside Cats facility. Contracts for the front month of November saw the greatest spread and ultimately upward pressure with prices trading in the range of 188.00p to 222.00p before settling at 215.88p per therm a day on day rise of 18.47p. Elsewhere gains were more modest, with UK gas futures for the calendar year of 2023 posting a gain of just 1.03p to settle at 333.59p per therm. Carbon prices continued to push higher with the EUA December 2022 contract adding another €5.22 to finish at €80.43 a tonne.
Front month of November continued to gain momentum
The UK baseload contracts for the front month of November continued to gain momentum yesterday adding an additional £15.00/MWh to finish the session at £244.75/MWh. This gain mirrored the rise in the NBP curve, the Q1-23 contract however shed considerable premium for the second session in a row yesterday dropping £35.00/MWh to settle at £564.50/MWh. Further out seasonal contracts posted small gains.GB Baseload for Day ahead delivery slipped marginally yesterday to end the session at £79.00/MWh representing a slight decline of £2.88/MWh
Crude Oil markets continued to push higher yesterday
Crude Oil markets continued to push higher yesterday with gains made across the curve. The hike in the European interest rate of 0.75% announced yesterday failed to dampen demand as the weakening US dollar continues to make US exports, currently at an all-time high more affordable. The Federal Reserve are due to meet next week and a further interest rate increase of 0.75%, which could help restrain demand, is now widely anticipated. China reported a 2% decline in crude oil imports for September as the impact of coronavirus restrictions continues. Brent crude oil for a December delivery added $1.27 to finish the session at $96.96 a barrel.
UK gas futures contracts have pushed higher in early trading
UK gas futures contracts have pushed higher in early trading this morning, with contacts for the front month of November last trading at 227.00p per therm, up 11.12p. December and Q1-23 have also seen upward pressure with the most recent trades at 358.42p and 390.00p per therm respectively. There has yet to be a movement on the seasonal contracts. The UK system has opened undersupplied by 8.8MCM against a forecast 349.8 MCM today as the restrictions from yesterday remain. Brent Crude has seen a slight drop this morning with the front month last trading at $96.22 a barrel down $0.74.