Intra-day Report
Yesterday, UK gas and power markets were closed due to a UK Bank Holiday. European carbon prices eased on Monday, driven down by low liquidity due to the Bank Holiday as well as easing concerns around transit supply via Ukraine to Europe. European gas markets however edged up on a possible escalation of unrest in the Middle East. Support from heightened geopolitical tensions fed into gains in oil markets as well, with front month Brent gaining just over 3% day-on-day.
Markets this morning
UK near curve gas contracts have opened in positive territory following the long weekend, while later dated contracts are yet to trade. The front month contract, which expires later this week, has opened higher than Friday’s close and last exchanged at 90.62p per therm, an increase of just under 2.00p. Winter 24 is exhibiting similar gains so far, having last gone through at 104.50p per therm, an increase of 1.68p day-on-day. On the prompt no Within day or Day ahead contract has traded via the broker exchange, although a Within day ask price of more than 3.00p below Friday’s close indicates that today’s system length is providing some weakness. Oil prices are again edging up this morning on geopolitical risks in the Middle East and a production halt at all Libyan oilfields. The front month Brent contract last traded at $81.41 a barrel.
