Gas Market
UK gas prices were relatively subdued on Tuesday, easing slightly after three consecutive sessions of gains. The September front month fell 0.54p to 83.13p/therm, while Winter-25 slipped 0.86p to 88.7p/therm, with the moves likely reflecting a technical correction and some profit-taking. On the prompt, the Day-Ahead traded largely sideways, edging up 0.50p to 83.00p/therm as the start of the Norwegian maintenance season lent some support. Nominations from Norway to the UK were down 22 mcm/d as Langeled flows were reduced, with an additional 43 mcm/d impact from one-day maintenance at the Ormen Lange field further tightening supply. However, gains on the prompt were capped by weaker gas-for-power demand as wind generation forecasts were adjusted higher.
Power Market
GB baseload power prices tracked the softer gas market on Tuesday, with minor losses across the curve. The September front month fell £1.15 to £77.10/MWh, pressured by a revision to wind generation forecasts for the week to 11.1 GW, more than 20% above seasonal norms. European carbon prices, meanwhile, rebounded strongly after a muted morning, climbing to their highest intraday level in 11 days.
The Dec-25 EUA contract settled at €72.75/tonne, up 0.8% on the day, as a second consecutive afternoon of buying provided support. In contrast, the benchmark 2025 UKA contract edged 0.1% lower, closing at £52.20/tonne following the UK public holiday.
Oil Market
Oil prices retreated on Tuesday, falling 2% and reversing the gains from the previous session as markets weighed geopolitical risks and trade tensions. Brent crude slipped $1.58, or 2.3%, to $67.22/bbl after reaching its highest level since early August on Monday. The earlier rally had been driven by supply concerns following Ukrainian strikes on Russian energy infrastructure and the prospect of additional U.S. sanctions on Russian crude. However, sentiment turned cautious after the U.S. imposed punitive tariffs on India over its continued purchases of discounted Russian oil, an action that threatens to curb demand from the world’s fastest-growing major economy while further constraining Russian export flows. At the same time, Ukrainian drone attacks on Russian refineries have forced a reduction in processing capacity, pushing Russia to export more crude that it can no longer refine domestically. Russia has revised up its crude oil export plan from western ports by 200,000 barrels per day in August.
Markets This Morning
NBP gas prices are negative this morning with the front month September down 1.62p at 81.51p/th and Winter-25 down 1.19p at 87.5p/therm as strong wind power output is limiting demand and offsetting lower supply from Norway. In the carbon market, the benchmark 2025 EUA is up 23c to €72.95/tonne. Oil prices have steadied with the front month down 24c at $66.94/bbl as markets are waiting for fresh developments in the Ukraine war and weighing an industry report that showed a drop in U.S. crude inventories.
27 August 2025
