UK gas markets experienced a day of mixed trading
UK gas markets experienced a day of mixed trading yesterday as near futures contracts slipped marginally while prices firmed further out. Contracts for the front month of December shed 2.52p to settle at 268.99p a therm and Q1 23 dropped 2.20p to end the day at 312.20p a therm. Contracts for the remainder of 2023 were up however with the full year contract rising 2.93p to finish at 302.51p a therm. There was little movement on the day ahead market with prices settling down 4.44p to 111.00 p a therm. The system remained under supplied throughout the session yesterday despite exports via the Bacton to Zeebrugge Interconnector being halted for the remainder of the month. UK facilities are scheduled to receive 12 laden LNG vessels by December 18th, a drop of 4 over the same period last year.
GB baseload power futures rebounded slightly
GB baseload power futures rebounded slightly from their fall on Friday and pushed marginally higher on Monday. Contracts for the front month of December settled at £269.00/MWh a rise of £3.00/MWh and contracts for Q1 23 settled at £360.00/MWh up £8.00/MWh on the day. Low wind generation on the day and a gas grid that was undersupplied throughout the session helped firm the day ahead contract which rose £59.87/MWh to close at £173.00/MWh. Both wind generation and temperatures are forecast to outturn slightly above the seasonal normal levels for the remainder of the week reducing the demand for gas for heating
A dramatic trading session yesterday
A dramatic trading session yesterday saw oil prices plunge to the lowest levels observed since January, amid reports OPEC+ produces were considering increasing production targets at their next meeting on December 4th. Prices rebounded strongly in late afternoon trading however, as the Saudi Arabian Energy Minister denied reports of any output increase, saying the current 2 million barrel a day cut will remain in place out to the end of next year. Brent crude oil contracts for the front of January settled at $87.45 a barrel yesterday, a fall of just $0.17 for the day with slight gains of up to $0.69 added to contracts further out on the curve. West Texas Intermediate (WTI) was similarly down in early trading before picking up in the afternoon with the December contract settling at $79.73 a barrel a fall of $0.35.
Carbon prices have given up some of the gains
The UK gas market has opened with further gains this morning. Contracts for the front month of December opened at 268.27p and last traded at 276.85p a therm a rise of 7.86 p. Further out the Q1 23 contract has also added premium with the last trade at 317.25p a therm a rise of 5.05p. The UK system has opened greatly undersupplied by 25.10MCM against a demand of 365.50MCM. The prompt last traded at 122.00p with the day ahead at 112.50p a therm. Carbon prices have given up some of the gains from yesterday with the December 2022 contract last trading at €74.13 a tonne a fall of €0.49. Crude oil for a January delivery last traded up $0.42 at $87.87a barrel.