Any rally in prices failed to materialise
Following an uptick in UK gas prices on Monday, Tuesday saw prices reverse direction to make marginal losses. An unplanned outage at the Norwegian facility of Asta Hansteen removed 5.00MCM of capacity, however with British storage currently 78.00% full, any rally in prices failed to materialise. UK temperatures are forecast to rise to above seasonal averages next week with wind generation also anticipated to increase, likely limiting the demand for gas for generation. The front month of March slipped 0.91p to finish the day at 146.98p per therm while the upcoming summer 2023 contract ended the day down 2.86p at 151.34p per therm. Some small declines were also noted on the prompt with spot down 4.00p at 148.05p per them and the day ahead dropping 1.55p to close at 151.50p per therm.
Prices for GB baseload futures contracts declined on Monday
Prices for GB baseload futures contracts declined on Monday as mild weather conditions are expected for the UK for the upcoming week. Wind generation forecasts are also expected to increase, exceeding seasonal averages by 20.00% next week. Contracts for the front month of March settled down £4.25/MWh at £148.25/MWh while the upcoming summer 2023 contract shed £4.00/MWh to finish the day at £153.50/MWh. Low wind generation supported the day ahead prices, with contracts rising £12.50/MWh to settle at £172.50/MWh. EUA carbon prices declined with the December 2023 contract down €2.63 at €91.17 a tonne.
Crude oil prices gained yesterday
Having declined for three consecutive sessions, crude oil prices gained yesterday. Supply disruptions caused by the tragic earthquakes on the Turkish-Syrian border heightened supply concerns, as facilities have been taken offline to assess and address any damages. Rising Chinese demand and recent positive US employment figures have also added pressure to prices. Chinese demand is expected be the price driver for the remainder of the year, accounting for half the total increase in global oil demand according to the International Energy Agency. Crude oil for the front month of April settled $1.05 higher at $80.99 a barrel.
Crude oil contracts have continued to climb
UK gas futures markets have opened marginally lower this morning. The front month of March is unchanged at 146.98p per them, but the summer 2023 contract has most recently traded at 152.24p, down 0.90p on yesterday’s close. The system is currently covered having opened with a demand of 356.20MCM. On the prompt, the spot has yet to trade but the day ahead contract has traded down 2.75p at 148.75p per therm. Crude oil contracts have continued to climb, with brent for the front month of April most recently trading at $82.69 a barrel, a rise of $1.70.