NBP prompt and curve contracts shed value on Wednesday as prices changed direction once again.

Gas Market

NBP prices changed direction once again on Wednesday with contracts across the prompt and curve shedding modest value. Falling demand and improving supplies outstripped the impact of the return of pipeline exports to Belgium via the Interconnector with the GB system operating in a long position throughout the day. Both Within day and Day ahead fell by 0.25p each to close at 83.25p and 83.35p respectively. An upward revision to wind generation levels for the coming days also fed into declines on the Weekend and Balance of Month contracts. Further out, October-24 fell by 0.93p to end the day at 84.28p per therm after reaching an intra-day high of 85.1p per therm.  

Power Market

GB Baseload curve products tracked the downside seen on the NBP market on Wednesday. The biggest losses were seen on the front month contract which shed £1.57/MWh to settle at £69.15/MWh. Further out, the losses were more modest, with Q1 2025 falling by £0.35/MWh to close at £85.90/MWh. In contrast, the Day ahead contract was in positive territory, moving up by £2.55/MWh to end the day at £80.08/MWh. EU carbon prices fell back on Wednesday in line with the wider energy complex, despite a build in speculative short positions. Dec-24 EUAs decreased by €0.42 to end the session at €63.82 a tonne. UK Allowances followed a similar trend, with Dec-24 posting a £1.01 decline to close at £39.59 a tonne.  

Oil Market

The U.S. central bank cut interest rates by half a percentage point on Wednesday, in a move that was expected to stoke a bull-run on crude oil markets. Instead, oil prices traded relatively flat day-on-day as concerns over global demand capped potential gains with the rate cut announcement raising worries about the health of the U.S. economy. The end of peak summer demand also fed into the modest decline. Brent for November-24 delivery closed the session at $73.65 a barrel, down just 5 cents on the previous close. Front month WTI followed a similar trend, falling by 28 cents day-on-day to settle at $70.91 a barrel.  

Markets this morning

NBP prices have changed direction again this morning with contracts across the curve opening in positive territory. October-24 is up 2.50p on yesterday’s close having last traded at 86.78p per therm. The Spot and prompt products are yet to trade. Flows via the Langeled pipeline are down day-on-day due to maintenance on the Kollsnes facility, however an uptick in wind power generation should offset the impact by lowering gas-for-power demand levels. Crude oil prices have opened stronger this morning, largely on the back of news that the U.S. Federal Reserve yesterday cut interest rates by half a percentage point. Front month Brent last went through at $74.51 a barrel, up 86 cents day-on-day.