The announcement of the extension United States reduced import tariffs supported gas prices in trading on Tuesday

Gas Market NBP futures rose during early trading on Tuesday and maintained those gains throughout the session. The market was buoyed by news that the United States will extend its current reduced import tariffs for several countries until August 1st. This extension provided a degree of hope that a deal could be reached with major trading partners and support global economic growth in the short term. Further support came from a statement by President Trump confirming that no additional extensions would follow. Consequently, the front-month August contract increased by 1.71p/th, settling at 81.71p, while the Winter-25 seasonal contract gained 0.98p, closing at 93.08p. Prompt prices also strengthened in response to the tariff announcement. Additionally, lower-than-average wind generation contributed to higher gas-for-power demand, with the Day-Ahead contract rising to 82.18p/th by the close. Power Market The baseload Day-Ahead contract posted a sharp gain, rising by nearly 13% day-on-day to settle at £83.00/MWh. This was driven by a forecast for significantly reduced wind generation—expected at just 2.8 GW, around 50% below the seasonal average —and a corresponding increase in the gas Day-Ahead contract. Further along the curve, power prices also strengthened in tandem with gains on the NBP gas market. The Winter contract closed at £84.60/MWh, representing a 3.3% increase from its recent low. EUA contracts diverged from European gas markets once more as the spot contract fell by €0.94/tonne to €69.54 amid widespread selling on Tuesday afternoon. Oil Market Crude oil prices rose for a second consecutive session on Tuesday, supported by a series of bullish developments. The Brent front-month contract gained $0.57, settling at $70.15/bbl, while the equivalent WTI contract increased by $0.60 to close at $68.33/bbl. The upward momentum was driven by revised U.S. production forecasts by the EIA, which indicate a slowdown in domestic output as recent weak price levels have led to reduced activity among producers. Market sentiment was further bolstered by President Trump’s announcement to extend reduced import tariffs for several countries until August 1st, offering a positive signal for global economic prospects.  Additionally, renewed attacks by Houthi militants on shipping vessels in the Red Sea reintroduced a geopolitical risk premium to the market, contributing to the price gains. Markets this morning NBP gas prices have continued to trend higher this morning, with the Winter-25 contract trading nearly a penny above Tuesday’s settlement. The market remains underpinned by the extension of reduced U.S. import tariffs until 1st August, providing ongoing support. Additional upward pressure is coming from persistently low wind generation and a gas system that remains finely balanced. Crude oil prices are also edging higher, with Brent last trading at $70.46/bbl. The market is buoyed by the tariff extension, alongside forecasts of reduced U.S. production and an anticipated rise in demand over the summer holiday period.