GB gas futures ticked up on Friday
After declining for the first four days of the week, GB gas futures ticked up on Friday with forecasts for lower wind generation hinting at stronger gas demand. Gains to the near curve were modest on the day with March settling 2.98p up at 134.51p, but week on week prices have moved lower as March shed 13.38p and April closed 15.13p down. NBP prompt prices recorded gains on Friday too with the gas system running short, as did prompt prices across Europe as wind forecasts are revised lower for the week ahead before rising again in the last week of the month. The spot gained 7.45p to close at 141.50p on Friday while the day ahead product ended the session at 138.30p, up 6.25p.
GB baseload futures settled mixed on Friday
GB baseload futures settled mixed on Friday with prices buoyed by increases in gas and carbon on the day. The March contract settled £2.00/MWh higher at £140.00/MWh while the April contract which was traded less vigorously remained flat. Carbon EUAs gained over 2.0% on Friday with the spot adding €1.95 to close at €2.10 per tonne. Forecasts for lower wind generation and gains on the NBP prompt supported the prompt on Friday. Baseload for the day ahead settled over £10.00/MWh higher on the day to close at £151.24/MWh.
Crude oil prices ended the week with Brent rising
Crude oil prices ended the week with Brent rising $1.89 a barrel on Friday to bring the week’s gain to $6.65 a barrel. Prices were spurred on after Russia announced plans to curtail oil production by 500,000 next month. This was already expected after the price cap imposed by the West to restrict Russia’s output with analysts forecasting their production falling by between 700,000 – 900,000 barrel per day for 2023. There’s no expectation on OPEC+ to increase output to compensate for the loss of Russian supplies. Gains on the day were tempered by economic concerns and higher U.S. oil inventories.
Gas markets have opened softer this morning
The gas markets have opened softer this morning with the spot and day ahead contracts trading lower in response to a comfortable gas system and mild temperatures. Gas demand is pitched at 293MCM for today, but supplies are forecast 15MCM long with ample LNG flows nominated at over 95MCM for today. The spot last traded at 130.00p, down 11.50p while the day ahead is 7.30p lower at 131.00p. The declines have fed into the near curve with March 129.70p, down, 4.81p. In the crude oil markets, Brent for April delivery is down 76 cents to $85.63 a barrel.