Prompt prices have opened lower this morning with the Day ahead product down 2.00p

Gas Market

The GB gas system opened short and lagged demand for most of Monday’s session giving prompt prices a boost after the weekend. Demand rose to 271mcm with the cooler temperatures and supplies still trailed by 8mcm just before the close of play.  The Spot and Day ahead products moved higher to settle at 61.05p per therm and 60.60p respectively.  On the curve, early gains were extended over the day with the front months bearing the brunt of increases as the March contract expires this Wednesday on ICE.  March settled 2.84p higher at 59.30p while the Summer-2024 contract was also well backed and closed at 59.79p, adding 2.50p on the day.  A rebound in carbon prices also provided some support to NBP futures yesterday.

 Power Market

The GB baseload curve was buoyed by gains to gas and carbon on Monday.  The front month added £2.73/MWh to close at £58.33/MWh while the Summer-2024 contract settled at £56.80/MWh, up £1.17/MWh.  Carbon EUAs rebounded on back of reports that prices had reached the floor encouraging buying activity as the Dec-2024 contract added €1.32 to close at €53.83 per tonne. Baseload for the Day ahead moved £2.95/MWh higher with lower wind generation and gains to the NBP prompt. The East-West Interconnector will be offline on Tuesday between 6.00pm and 10.00pm for maintenance. The 500MW capacity line links Ireland to the UK.  

 Oil Market

Crude oil prices partially recovered some of the losses from Friday’s session yesterday with prices edging higher on diesel supply concerns.  U.S. refinery activity was curbed at the end of January and early February due to a blast of freezing temperatures and so reserves of diesel for the world’s largest oil consumer has plummeted. Gains on the day were limited by concerns that U.S. interest rate moderation may be delayed, and this could dampen demand.  Some hope for a humanitarian pause in the Israel Hamas war came late in the session with reports that the truce talks in Paris were close to an agreement. Brent for April delivery settled at $82.53 a barrel up 91 cents.  

Markets this morning

Prompt prices have opened lower this morning with the Day ahead product down 2.00p per therm in early exchanges. GB gas demand is forecast a little above yesterday’s level and supplies are lagging by 8mcm.  The near months have also opened softer and much of yesterday’s gains have been reversed.  March, the front month is down 1.49p while the Summer-2024 contract, which has seen less activity, has yielded just 0.29p so far.  Brent for April delivery is reasonably flat with just 12 cents added to the price for April as the market digests the news that the truce talks in Paris could be close to agreeing a ceasefire.