Near NBP natural gas futures ended the week an average of 0.46p lower on Friday

Gas Market

NBP futures ended the week with a decline of around a half a penny on Friday as trading was subdued despite the expiry of three key contracts on the ICE platform.  The front month, quarter and seasonal contracts finished up an average of 0.44p lower on Friday and down 4.69p for the week on average.  Buying activity for the quarter and summer contracts was limited on hopes of a successful ceasefire between Russia and Ukraine which could pave the way for a return of Russian gas supplies which would be bearish for gas pricing.  On the prompt, the spot increased by a half a penny while lower gas demand forecast for next week pressured the remainder of the prompt.  The contract for the week ahead yielded 0.86p aligning the price with the new front month for the NBP, May.  Scheduled maintenance has started at Karsto and Asgard with works set to commence at Nyhamna on Wednesday.  

Power Market

Baseload power futures eased on Friday as the market reacted to early losses on the NBP curve.  The April contract settled at £85.25/MWh which was down £1.00/MWh from the previous close and brought the decline for the week to £4.78/MWh. The Summer-25 contract yielded £0.85/MWh day-on-day and settled at £82.00/MWh.  Forecast for low wind generation for Monday supported the Day a head product. Carbon EUAs settle higher on Friday with the Spot adding 48 cent to settle at €67.24 per tonne.  The contract still returned a loss of €2.64 per tonne for the week due sustained selling pressure earlier in the week.    

Oil Market 

Crude oil prices eased on Friday, but the decline was marginal at 0.5% or 40 cents a barrel for Brent. Secondary tariffs on buyers of Venezuelan oil provided support to oil prices over the week however, with fresh tariffs being announced on imports for car industry the latest run of successive gains for the global benchmark was halted on Friday.  The May contract did post a week-on-week gain of $1.47 a barrel.  There are concerns that the tariffs being applied by the Trump administration will induce retaliatory tariffs and plunge the world into a global trade war which will subdue demand for crude oil.  The May contract for Brent settled at $73.63 a barrel on Friday while West Texas Intermediate closed 63 cents down at $69.36 a barrel.  

Markets this morning

GB gas demand has fallen below 200mcm for today as the mild temperatures are set to continue for the week and the system is forecast long by 16mcm.  Gas prices opened a touch firmer but are easing on the latest trades.  The new front month, May, has just edged into negative territory with the last trade at 98.43p per therm while the June contract last went through at 99.08p.  Carbon EUAs have retraced Friday’s gains with the Dec-25 contract last exchanging at €67.95 per tonne.  The May contract for Brent is up 52 cents a barrel on its final day as front month as President Trump warns of more sanctions on Russia and threatens Iran with military action.