Gas Market
NBP prices rebounded on Friday after Thursday’s heavy losses, with near months averaging a gain of 3.08p per therm day-on-day. October-24 made the biggest day-on-day move, posting a 3.39p increase to end the week at 82.50p per therm. The Spot and prompt were supported by lower supplies into the UK via the Langeled pipeline as several Norwegian maintenance events were extended. Within day increased by 4.88p to close at 83.50p per therm, while the Day ahead contract rose by 3.88p to end the day at 82.05p per therm. Maintenance works on the BBL pipeline between the UK and the Netherlands are scheduled to start today which will limit the UK’s export capacity. Flows are expected to return fully on Friday, 27th September. European storage levels currently sit at a healthy 93.70% as we near the start of the Winter-24 season.
Power Market
Increases across the NBP gas market influenced the GB power curve to gain ground on Friday. The October-24 contract gained £5.22/MWh day-on-day to end the session at £69.75/MWh. Further out, the upside was less pronounced, with Winter-25 increasing by £1.88/MWh to end the week at £81.13/MWh. Volatility continued on the prompt, with the Day ahead contract settling £3.48/MWh higher day-on-day.
European carbon prices tracked the rebound across energy markets on Friday, with the Dec-24 contract increasing by 24 cents to close the week at €63.57 a tonne. UK Allowances followed a similar trend with the front month posting a gain of £0.35 a tonne on the previous close.
Oil Market
Crude oil prices made marginal losses on Friday, although front month Brent ended the session up 4% week-on-week. Oil prices have been supported by the U.S. Federal Reserve’s decision to cut interest rates, a move which generally boosts economic activity and energy demand. However, gains were hampered by concerns of a weak U.S. labor market as well as future demand growth in China. The impact of Hurricane Francine remained a supporting factor also, with about 6% of crude production in the Gulf of Mexico still offline heading into the weekend. Front month Brent ended the week at $74.49 a barrel, down 39 cents day-on-day. Meanwhile, WTI for October-24 delivery settled at $71.00 a barrel, down just 16 cents on its previous close.
Markets this morning
Friday’s upside has continued into this morning with October-24 last going through at 74.70p per therm, up 2.20p from Friday’s close. No trades have so far gone through on the prompt market. Norwegian supply into the UK has increased from Friday’s levels, helping the GB system to maintain a long position. Gas-for-power demand levels are expected to drop this week due to increased wind speeds, which should help to offset increased domestic demand due to colder temperatures. Crude oil prices are trading sideways so far this morning with fundamentals remaining largely unchanged on Friday. Front month Brent last went through at $74.39 a barrel, down 10 cents on the previous close.
23 September 2024
