UK gas prices increased slightly for the third consecutive session on Friday
UK gas prices increased slightly for the third consecutive session on Friday, while the market as a whole remains stable following on from the one-year anniversary of the Russian invasion of Ukraine. The front month contract March has taken the brunt of the upward push, settling at 138.25p per therm, up 4.75p on average over the last five days of trading while Summer 23 has gained a modest 1.50p over the same period to end Fridays session at 136.50 pence per therm. Due to a short gas system in the UK , the prompt market experienced a small price bounce. This was also influenced by weather fundamentals and low wind generation. The Within day and Day ahead contract settled at 132.05p and 131.05p respectively. Nonetheless gains were curtailed as storage levels remain high and LNG deliveries are expected to remain abundant.
GB baseload future prices extended their gains
GB baseload future prices extended their gains on Friday for the second consecutive session, as a modest bounce in UK gas prices fed into the market. The front month contract March edged £1.25/MWh higher to end the day at £138.25/MWh while the front season, Summer 23 followed a similar path, up £1.00/MWh to settle at £136.50/MWh. EUA carbon prices finished strong on Friday, following on from historical gains this week, as robust buying activity has encouraged prices to push higher. EUA spot contract settled at €94.05 a tonne, up €0.42 on the day.
Global crude oil markets opened on a positive note during Friday’s session
Global crude oil markets opened on a positive note during Friday’s session, with Brent crude front month contract hitting a peak of $83.39 a barrel. However, as the day progressed, the contract lost ground and eventually settled at $83.16, up $0.95 on the day. Despite the intraday volatility, the market remained cautiously optimistic as prices continued to hover between the $80 and $85 range. One factor contributing to the market’s cautious outlook is the recent trend of US inventories increasing for nine consecutive weeks, which suggests that demand for crude oil may be easing. While on the other hand the tightening of Russian oil supply is supporting prices.
UK gas prices have opened in negative territory this morning
UK gas prices have opened in negative territory this morning, with the front month contract March 23 falling to a low of 122.00p and is currently priced at 123.60p per therm, down 4.09p from Friday’s close. The front season contract Summer 23has dropped by 3.70p and was last seen trading at 124.46 pence per therm. This puts it marginally above the lowest price point of the year, which occurred on February 21st at 121.82 pence per therm. NBP spot contracts has also opened lower, despite the UK gas system being 7.00MCM undersupplied. EUA carbon prices have started the week with a bullish tone, the Dec 23 contract last traded €1.51 higher at €98.93 a tonne.
27 February 2023
