Upward momentum was evident across UK near curve gas prices
Upward momentum was evident across UK near curve gas prices yesterday, bolstered by Norwegian supply fears. However further dated contracts continued their recent downward trajectory. Norwegian operator Gassco announced maintenance yesterday at numerous gas fields, causing the remaining monthly contracts of the year to gain 23.15 pence per therm on average. The announcement highlights the UK’s exposure to Norwegian gas supplies. Far curve contracts continued to release risk premium, as Winter 23 settled down 10.94 pence per therm at 434.03 while Summer 24 lost 10.85p to settle at 277.26 pence per therm.
GB baseload futures prices was mixed on Thursday
Movement in the GB baseload futures prices was mixed on Thursday, as the market waits for further details on the market intervention by the European Commission. The front month contract October made a gain of £5.40/MWh to settle at £485.40/MWh, a marginal increase in today’s energy market. Downward momentum was evident further along the curve however, with Summer 23 down £10.75/MWh while Winter 23 also settled lower at £389.75/MWh, a decrease of £7.75/MWh. Day ahead baseload power lost £74.97/MWh to close at £341.20.
Crude oil markets slumped for a third consecutive day
Crude oil markets slumped for a third consecutive day on Thursday, as the bleak global economic outlook pressures demand. China, the world’s second largest consumer of oil has reintroduced Covid-19 restrictions in forty-one major cities, which account for 32% of the country’s GDP. Further downward pressure in the market arose when French President Macrons announced that he is hopeful a deal will conclude in the coming days to restore the Iran nuclear deal. Iran has the capacity to export two million barrels of oil a day, a welcome addition to a tight market. Brent crude front month November opened at $95.18 a barrel, before falling back to settle at $92.36 a barrel. WTI shed $2.94 to settle at $86.61 a barrel.
October the front month is trading at 415.00p
The UK gas market has opened with a clear signal of downward momentum, October the front month is trading at 415.00p, down 68.74 pence from yesterday’s settlement while Q4-22 is 516.17p, a decrease of 51.60p. The front seasonal contracts are yet to trade. UK gas demand is forecast at 208 MCM today with robust interconnector exports to mainland Europe at 80MCM. Brent crude prices have clawed back yesterdays loses, with the front month currently up $2.18 a barrel at $94.54. OPEC’s meeting on Monday is lifting the market as the cartel gather to discuss supply cuts.
02 September 2022
