Gas Market
NBP gas prices were little changed on Tuesday, with the market remaining rangebound amid stable fundamentals and muted sentiment. The front-month September contract edged up by 0.27p to settle at 84.86p/therm, while further along the curve, the Summer-26 contract slipped by 0.07p to 83.6p/therm. Support for the front month came as Norway’s gas pipeline operator Gassco extended the planned maintenance at the Kårstø processing plant from August 7–21 to August 8-26. Despite this, the UK gas system remains well balanced, underpinned by strong Norwegian exports and healthy renewable generation. These factors have also supported continued injections into EU storage, now 69.96% full, though still 16.05% below the level seen this time last year. The day-ahead contract dipped in early trading but recovered to close 0.25p higher, supported by lower-than-forecast wind output.
Power Market
GB Baseload power prices were mixed on Tuesday, with the Day-Ahead price surging by 230% to £69.30/MWh amid forecasts for a sharp drop in wind generation following Storm Floris. Along the curve, however, prices remained broadly flat, mirroring the gas market, as warmer weather and unchanged fundamentals kept sentiment subdued. The front month contract gained £0.30 to settle at £79.80/MWh.
European carbon allowances rose on the back of strong and sustained buying interest. The benchmark Dec-25 EUA contract settled 0.89% higher at €71.41/tonne, supporting a broader recovery in energy markets after a soft start to the day.
Oil Market
Oil prices fell on Tuesday as concerns over rising OPEC+ supply and weakening global demand outweighed geopolitical tensions. Brent crude for October delivery dropped $1.12, or 1.63%, to settle at $67.64 a barrel, while WTI declined $1.13, or 1.7%, to $65.16, marking the lowest closing levels for both benchmarks in five weeks. The bearish tone followed OPEC+’s weekend agreement to boost output by 547,000 barrels per day in September. Additionally, disappointing U.S. services sector data and growing uncertainty around trade policy added further downward pressure. President Trump heightened tensions by threatening additional tariffs on Indian goods due to India’s continued purchases of Russian oil, with the country importing around 1.75 million barrels per day from January through June.
Markets this morning
Energy markets are mixed this morning. Gas prices are easing, weighed down by higher wind generation and subdued demand, with NBP near-curve contracts down an average of 0.97p/therm. The market remains rangebound, with no significant shift in fundamentals or sentiment. European carbon prices are also softer, with the Dec-25 EUA benchmark down €0.28 to €70.73/tonne. In contrast, oil prices are rising following President Trump’s threat of secondary sanctions on buyers of Russian crude, specifically targeting India. Attention is now turning to China, with growing speculation that its purchases of Russian oil could soon face additional scrutiny or tariffs. Brent crude last traded at $68.72/bbl, up $1.08.
06 August 2025
