Gas Market
The NBP market continued to move down on Wednesday following on from Tuesday’s losses. Further weakening in Asian gas markets due to high storage levels and continued weak demand has reduced competition across the global LNG market which fed into the downside on the NBP curve. European storage stocks continue to grow, with fullness levels currently standing at 76.43%, which also weighed on prices. As it edges closer to expiry, the September 25 contract closed at 80.43p per therm, down 2.70p day-on-day. The Spot market was also in decline yesterday as the GB system was well supplied by high wind generation levels, with the Within Day contract dropping 2.00p by the close. Forecasts suggested that the high wind levels were set to continue into today, which played into weakness on the prompt. The Day ahead contract fell by 2.10p to close the session at 80.80p per therm.
Power Market
GB baseload curve prices followed the downward moves seen on the NBP gas market on Wednesday. The front month contract edged down by £0.77/MWh to close at £76.33/MWh, while the Winter 25 contract shed £1.43/MWh to end the day at £82.83/MWh. Despite a downward revision, wind generation forecasts were set to remain above normal levels, which weighed on the prompt. The Day ahead contract fell by £1.28/MWh day-on-day to close at £83.87/MWh.
European carbon markets followed the downward trend of gas and power prices on Wednesday. The Dec 25 EUA contract dropped €0.37 by the close to settle at €72.30 a tonne.
Oil Market
Crude oil prices edged sideways on Wednesday, fluctuating between positive and negative territory during the session. By the close prices settled modestly higher, with the front month Brent contract posting a day-on-day gain of 83 cents to finish at $68.05 a barrel. The minor support came from the American Petroleum Institute’s weekly supply report that showed a drop in U.S. crude and gasoline inventories last week. Further economic and demand uncertainty was fuelled by the potential impact of new U.S. tariffs of 50% on imports from India, which were imposed as punishment for buying Russian oil. The West Texas Intermediate (WTI) contract for October 25 delivery increased by 90 cents day-on-day to close at $64.15 a barrel.
Markets this morning
Further gains in terms of storage stock levels across Europe continue to feed downside into the NBP this morning. Lagging demand in Asia has meant that Europe should expect a surge in LNG gas imports over the coming months, alleviating supply concerns heading into winter. The front month contract last went through at 77.94p per therm, down 2.49p on yesterday’s close. The strong presence of renewables in the power stack, coupled with a well supplied system are weighing on the Spot, with Within Day having dropped 2.00p when compared to its previous settlement. Crude oil markets have also fallen back, with losses driven by lower U.S. fuel demand and the restart of Russian crude supply to Hungary and Slovakia through the Druzhba pipeline.
28 August 2025
