UK gas market continued to soften on Friday
UK gas market continued to soften on Friday with near futures contracts taking the brunt of the downward momentum. On the prompt, the impending cold weather outlook did little to impact the market, which provided an element of market confidence as winter progresses. The front month contract pushed 7.89p lower to end the week at 336.31 pence per therm while the bellwether contract Summer 23 lost 9.18p to settle at 332.21 pence. Despite the losses, the Summer 23 contract still held a 9.71p premium over the last five days of trading. NBP Within day lost 11.95p to settle at 323.05 pence per therm, the day ahead displayed heavier losses, down 16.00p to end the week at 314.05 pence per therm.
GB baseload power future contracts displayed mixed sentiment on Friday
GB baseload power future contracts displayed mixed sentiment on Friday, as contracts along the near curve drifted lower while further along the curve contracts pushed higher. The front month contract shed £15.00/MWh to settle at 530.25/MWh, taking direction from losses in the UK gas market. Baseload power for Summer 24 made the largest gain, up £9.50/MWh on the day to settle at £225.00/MWh. GB baseload power for day ahead delivery ended the session £52.74/MWh lower at £288.07/MWh on Friday. EUA spot market extended its recent bullish trend, with the spot contacted settling at €87.53 a tonne, up €2.69 on the day.
Market sentiment was relatively flat in the global oil markets
Market sentiment was relatively flat in the global oil markets on Friday morning, as supply and demand fundamentals continued to sway. A weaker US dollar supported prices as it hit a four-month low. However, prices began to decline in the afternoon ahead of OPEC+ meeting on Sunday. OPEC+ are expected to keep their production cut of 2 million barrels per day. Brent crude finished in negative territory, at $85.57 a barrel, down $1.31 on the day. The WTI equivalent also fell short, settling at $79.98 a barrel down $1.24. All eyes remain on China as the lifting of Covid restrictions will continue to feed into global oil markets.
Liquidity is thin this morning
UK gas future contracts have begun the week in positive territory, with the front month contract January opening at 355.00p and last traded at 345.38p up 9.07 pence per therm. Liquidity is thin this morning, with seasonal contracts yet to trade. Prompt contracts have also opened higher this morning despite the UK system being 12MCM oversupplied. Ample supply from Norway is meeting demand which is forecast at 345MCM today. Brent crude prices are up this morning on the back of OPEC+ decision to keep to their planned production cut of 2 million barrels per day, the easing of China’s covid restrictions is also supporting the market, the front month contract is up $1.74 at $87.31 a barrel.