The NBP front month contract strengthened yesterday
The NBP front month contract strengthened yesterday, while all remaining future gas contracts pushed lower as healthy near-term fundamentals supported the market. However, market momentum was stable when compared to recent volatile sessions. With ample supply and robust storage levels, the weather will be the key market driver this winter. November the front month ended the session at 185.20 pence per therm, up 2.00p on the day while Winter-23 took the brunt of the downward pressure to settle at 343.40 pence per therm. Prompt contracts remained bearish throughout the session, with the Day ahead contract settling at 33.00p, down 6.05 pence per therm. The Day ahead discount between the NBP and TTF was at 32.30p per therm yesterday.
GB Baseload power prices on the near curve pushed higher
GB Baseload power prices on the near curve pushed higher, while further dated contracts edged marginally lower. Strength in the EUA market supported the front month contract November which settled at £227.05/MWh, up £1.80/MWh. Gains were modest for the Q1-23 contract, up £14.75/MWh on the day at £630.00/MWh. Risk premium eased for the 2024 seasonal contracts, down £4.60/MWh on average. At market settlement the day ahead contract was priced at £66.17/MWh with the monthly index tracking to out-turn at £152.38/MWh.
Brent crude market opened marginally higher on Tuesday
Brent crude market opened marginally higher on Tuesday at $93.76 a barrel, taking direction from the US dollar which weakened slightly. However, gains were restricted by ongoing demand concerns which continue to overshadow market momentum, leading to Brent crude for December delivery to settle at $93.52 a barrel up 26 cents on the day. US West Texas Intermediate front month was down 75 cents at $84.57 a barrel. Early indications of uncertain economic activities in China and the US remain at centre stage in oil benchmarks, as both nations are the largest oil consumers in the world.
UK gas future contracts have picked up where they left off
UK gas future contracts have picked up where they left off yesterday, with the front month contract November currently up 5.80p at 191.00 pence per therm while gas for delivery in December is down 6.20p at 327.99p. Seasonal contracts are yet to trade. The UK gas system has opened 7MCM oversupplied with demand remaining stable as weather conditions are mild. Brent crude prices have opened marginally higher with the front month of December trading at $93.93 a barrel as rising US crude stock is easing supply concerns.
26 October 2022
