NBP futures continue to slide

NBP futures decline throughout session on Friday

NBP gas futures fell for a third consecutive day on Friday. Prices came under pressure from early trading and retreated throughout the session. Contracts for a December delivery shed 37.96p to settle at 228.43p a therm. The downward pressure was apparent across the curve with the 2023 contract retreating 33.49p to settle at 259.15p. This movement brought the calendar year down 15% on the position just a week ago. Although the system was comfortably oversupplied throughout the day, the NBP day ahead experienced pressure as gas-fired power generation rose to compensate for reduced wind generation on Friday. LNG deliveries to the UK system remain buoyant with an additional 15 cargoes expected at British facilities by December 3rd.  

 GB baseload contracts see downward pressure

Friday saw a continuation of the downward pressure on GB baseload contracts as they declined for a fifth session. Contracts for the front month of December shed £16.75/MWh to settle at £252.75/MWh but the greatest decline was for the first quarter of the new year with contracts for Q1 23 dropping £25.25/MWh. The system remained oversupplied throughout the session on Friday, but a steep decline from 13.70GW to 3.40GW in wind power generation for the day saw day ahead baseload contracts surge £49.73/MWh to settle at £138.00/MWh. The outlook is for UK wind generation to exceed the seasonal average for the coming week.  

 Crude Oil markets push higher on Friday

Crude oil markets pushed higher for a second session in a row on Friday with Brent crude for a January delivery surging $2.32 to settle at $95.99 a barrel. West Texas Intermediate, (WTI) experienced a similar rise, with contracts for January posting a gain of $2.49 to settle at $88.96 a barrel. Oil prices were however still down on the week as the two day uptick was insufficient to outweigh the reductions from earlier in the week. The decline in the US dollar since the start of the month has helped to bolster demand from non-dollar consumers. Positive economic news from America, where the interest rate hikes aimed to curb the inflation rate may be seeing an impact have also helped boost the demand outlook.  

NBP futures decline for third consecutive session

NBP futures contracts declined for a third consecutive session on Friday with focus again on the near curve. Contracts for a December delivery posted a fall of 37.96p to end the session at 228.43p a therm bringing contracts 20.42% lower for the week. Crude oil markets pushed higher as the weakening US dollar helps to bolster demand from non-dollar consumers. Brent for the front month of January surged $2.32 to end the day at $95.99 a barrel. Carbon prices pushed higher with the December 2022 EUA’s gaining €2.46 to end trading at €75.77 a tonne.  

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