Gas Market
Proceedings on the NBP gas market were best described as choppy on Friday as the front month ebbed and flowed across the session. The October contract opened above Thursday’s settlement and continued higher up until midday, trading up to 86.88p/th. However, prices were soon in decline and heading back towards Thursday’s settlement price before bottoming out at 84.56p/th. Once the downward momentum had run out the NBP market swung into positive territory once more. The front month ended the session 1.34p/th higher than the previous day, but at 85.76p/th October was down by 2.4% week on week. Prices were primarily driven by frequent adjustments to the end dates of the ongoing planned maintenance at Kollsnes and Nyhamna. Movements across the rest of the curve were muted, with the winter-24 and summer-25 contract both increasing by less than a penny.
Power Market
GB baseload power futures tracked movements on the NBP gas market. Mirroring gas prices, power baseload futures were volatile on Friday, ebbing and flowing across the session. The front season, Winter-24, eventually closed at £84.70/MWh, a day-on-day gain of 70 pence, as further support was garnered from increasing carbon allowances market. The Dec-24 UKA contract increased by 54 pence per tonne.
The Dec-24 EUA carbon allowance closed the day lower at €65.10/tonne, having traded in the €64.00 range earlier in the session. Carbon tracked movements on European gas markets for much of the session, however as gas rebounded late in Friday’s session, carbon failed to react.
Oil Market
Crude oil looked to be continuing its recent upward trajectory on Friday for the third consecutive session having tested lows not seen since 2021 earlier in the week. Oil prices continued to be supported from the fallout of Hurricane Francine in early trading, as up to 42% of the US’s oil platforms in the Gulf of Mexico had remained shut in. Final safety checks and damage assessments were being carried out which helped fuel the early session gains. However, as those inspections were completed the Gulf of Mexico oil production resumed and as a result prices declined prior to the close. Closing at $71.61 a barrel the Brent front month contract was relatively flat week on week. Disruptions to production are continuing in Libya which limited the potential losses.
Markets this morning
Gas prices have opened in decline in early trading this morning. Maintenance on the Langeled pipeline a major arterial route for Norwegian gas into the UK has been completed. As a result, the pipeline is nominated to deliver 21mcm of gas which has helped push gas prices lower. The Oct-24 contract last traded at 82.84p/th, a decline of almost three pence on Friday’s close. Prompt prices are also in decline as the day ahead contract last exchanged hands at 84.00p/th. Crude oil is trading higher on expectations of a US interest rate cut this week, with the contract last trading at $71.93/bbl.
16 September 2024
