Markets This Morning
UK wholesale gas prices have moved higher this morning, with the front-month NBP contract up 1.47p at 190.04p/therm. Concerns over competition for limited LNG shipments and relatively low European storage levels are outweighing stronger Norwegian imports and lower gas demand from the power sector. Persian Gulf flows have improved in recent weeks, although supply risks remain elevated after a Greek-owned LNG tanker was reportedly struck near the Strait of Hormuz. UK gas-for-power demand is down sharply on the Day-Ahead as stronger wind generation limits the impact of higher local demand from colder temperatures. Brent crude is also higher, up $1.38 at $101.96/bbl, as concerns persist over whether the recovery in Middle Eastern flows can be sustained amid increased tanker attacks.
Yesterday in Summary
UK wholesale gas prices rebounded on Tuesday, with the NBP front month rising 4.98p to 188.57p/therm as colder weather forecasts for north-western Europe lifted demand expectations and renewed supply risks emerged from the Gulf of Mexico and Strait of Hormuz. GB front-month power followed gas higher to £188.57/MWh, while Day-Ahead prices fell on stronger wind forecasts. Dec-26 EUAs gained 1.09% to €84.78/t, supported by firmer gas and equity markets. Brent settled broadly flat at $100.58/bbl as recovering Middle Eastern exports and expected emergency stock releases offset ongoing geopolitical supply risks.
