The NBP curve reversed much of the previous days’ losses on Wednesday, with the near months averaging gains of 1.57p per therm.

Gas Market

The NBP curve reversed much of the previous days’ losses on Wednesday, with the near months averaging gains of 1.57p per therm. Bullish weather fundamentals forecast for early January, as well as rising geopolitical tensions regarding the Trump ordered blockade of Venezuela, supported prices. The front month contract settled at 72.43p per therm, having increased by 1.71p by the close. The prompt chose to ignore softer fundamentals in terms of gas-for-power demand levels and warmer temperatures as prices moved up. Some concerns around storage levels filtered into the upside, with storage injections needed over the coming week if supplies are to remain stable. The Day ahead contract gained 1.15p day-on-day to close at 69.95p per therm, while Within Day increased by 2.30p, driven by an undersupplied GB system.

Power Market

Above average wind output forecasts for the rest of this week weighed on GB Baseload prompt contracts on Wednesday. The Day ahead contract shed £12.61/MWh day-on-day to settle at £65.23/MWh. Curve contracts, in contrast, ended the session higher day-on-day following the upward moves across the NBP gas market. The front month contract gained £1.30/MWh day-on-day to settle at £81.70/MWh, while the Winter 26 contract posted a £1.10/MWh incline to settle at £73.45/MWh. European carbon prices continued to firm on Wednesday morning in a continuation of the previous sessions’ bullish activity. However, the upside couldn’t be sustained, with prices falling back modestly before the close. Dec 26 Allowances shed €0.97 to settle the day at €86.64 a tonne.

Oil Market

Oil prices rallied by more than 1% on Wednesday following the near 5-year lows encountered during the previous session. The bounce in prices came after U.S. President Donald Trump ordered a complete blockade of all sanctioned oil tankers entering and leaving Venezuela. The announcement raised global political tensions and supply concerns despite being unclear as to how many tankers will be affected and how the U.S. will impose the blockade.  However, the ongoing Russia-Ukraine peace talks limited gains. The front month Brent contract increased by 76 cents day-on-day to settle at $59.68 a barrel. Meanwhile, the West Texas Intermediate (WTI) contract for January 26 delivery posted a gain of 67 cents by the close to settle at $55.94 a barrel.

Markets this morning

The NBP gas market is flat this morning, with the near curve contracts oscillating above and below their previous close. The front month contract last went through at 72.41p per therm, just 0.02p above Wednesday’s settlement. The Day ahead contract is similarly flat, having gained just 0.04p so far. The modest upside is being driven by cooler temperatures and higher gas for power demand levels. Crude oil markets have risen this morning on concerns around further U.S. sanctions against Russia and the supply risks posed by the blockade of Venezuelan oil tankers. The front month Brent contract last went through at $59.85, up 17 cents on Wednesday’s close.