Markets This Morning
UK wholesale gas prices have edged higher this morning as forecasts for colder temperatures and reduced renewable generation are expected to lift demand. Gas for power consumption is forecast to increase by 11mcm/d to 39mcm/d on the Day ahead. Gas prices reached four-year highs earlier this week amid intensifying competition with Asian buyers for LNG cargoes and renewed attacks on shipping in the Middle East. The front-month UK NBP gas contract is up 2.04p at 215.69p/therm. Meanwhile, Brent crude prices have eased slightly, with the front-month contract falling $0.57 to $105.35/bbl following the IEA’s announcement on Thursday that it would release more than 20 million barrels of diesel onto the market.
Yesterday in Summary
UK wholesale gas prices were mixed on Thursday, with the NBP front-month falling 2.36p to 213.65p/therm, while Summer-27 gained 1.82p amid concerns over LNG availability and increased Chinese demand. GB baseload power followed a similar trend, while Day-ahead prices rose sharply on forecasts of reduced renewable generation. European carbon prices fell 1.5% to €85.84/tonne amid weaker gas prices and disappointing industrial data. Meanwhile, Brent crude edged down to $105.92/bbl as potential US sanctions relief weighed against escalating Middle East tensions and renewed Ukrainian attacks on Russian refineries.
