Wholesale gas prices eased for a third session on Wednesday

Gas Market

NBP futures continued to soften on Wednesday and stretched the current run of declines to three days. Wholesale gas prices had been rangebound for several weeks, but the near curve has fallen to fresh 18-month lows as storage levels climb closer to 90% of capacity for Europe. Meanwhile robust wind generation coupled with above seasonal norm temperatures are expected to supress gas demand for the next few days raising expectations that storage reinjection could ramp up. Prompt prices eased early on and held most of the losses to the close as the Spot and Day ahead declined by 1.75p and 0.85p per therm respectively. November, the new front month, fell 1.78p per therm intra-day before recovering to close at 80.01p while the Summer-26 contract settled at 76.57p taking the loss for the last three days to 3.34p.

Power Market

The mild temperatures coupled with higher output from wind pressured GB power prompt prices on Wednesday. A decline in corresponding contracts on the NBP also weighed as baseload for the Day ahead fell by 8.1% or £6.59/MWh.  On the curve, contracts out to next summer also weakened yesterday as the near curve shed an average of £0.27/MWh. Losses were limited on the day after carbon EUAs switched tack as early losses were reversed through the session.  Contracts for European Allowances for Dec-26 and Dec-27 ended the session an average of €0.69 per tonne higher. An early selloff of EUAs quickly turned to a buying frenzy as investors looked to take advantage of the lower priced contracts after Tuesday’s decline.

Oil Market

On Wednesday we witnessed crude oil prices weaken for a third session as the market expects OPEC+ to increase output in November while U.S. crude oil inventories increased by more than expected last week. The Energy Information Administration released the latest weekly inventory report yesterday showing reserves of U.S. crude oil stocks climbed by 1.8m barrels over the previous week which was almost double the expected figure. OPEC+ are believed to be discussing an increase in production output for November as they continue reversing voluntary cuts since April and have added over 2.5m barrels per day. The markets are also concerned at the shutdown of the U.S. government which could delay the release of many economic indicators.

Markets this morning

The compressor issue at the Troll plant has been extended into Friday according to the latest update from Gassco the Norwegian gas operator. Prompt prices have yet to react while on the near curve, contracts opened firmer however, latest trades have moved into negative territory. November last exchanged at 79.66p per therm having traded to a high of 80.89p earlier. The Summer-26 contract is marginally lower at 76.25p and contracts past this have yet to get going.  In the crude oil markets, Brent is oscillating between losses and gains, and the latest trade is 14 cents down at $65.21 a barrel on expected increase in output from OPEC+. Find out more about our Commercial Energy Services “Read more carbon market news in our Insights section.” “Learn how Kore Energy can help you to develop a sustainable energy management system