NBP curve contracts moved up for a second consecutive day on Wednesday despite market fundamentals remaining largely unchanged.

Gas Market

NBP curve contracts moved up for the second consecutive day on Wednesday despite market fundamentals remaining largely unchanged. On its penultimate day trading as the front month contract, November 25 increased by 0.95p to settle at 80.56p per therm. Slightly further out, gains were more pronounced, with the Q1 26 contract closing up by 1.13p to settle at 83.89p per therm. A moderate increase in prices across the prompt was underpinned by a combination of softer renewable output, cooler temperature forecasts and tighter supplies. The Day ahead contract gained 0.70p day-on-day to close at 78.30p per therm. The Within day contract shrugged off potential downside from an oversupplied GB system, instead focusing on tighter Norwegian flows to increase by 2.50p day-on-day.

Power Market

GB Baseload future contracts followed the upward moves exhibited by the NBP gas market on Wednesday. The front month contract posted a day-on-day gain of £0.80/MWh to close at £79.55/MWh. Meanwhile, the prompt market traded sideways, with modest gains driven by some forecasts for lower wind output as well as higher French power prices. The Day ahead contract edged up by £1.38/MWh day-on-day to settle at £78.88/MWh. European carbon markets displayed modest gains on Wednesday, following the trend set across gas, power and oil markets. European Allowances for December 25 delivery increased by €0.45 day-on-day to close at €78.80 a tonne. Dec-25 UK Allowances posted a similar gain to end the session at £55.46 a tonne.

Oil Market

Crude oil prices edged up on Wednesday on renewed global economic sentiment and a fall in U.S. crude stock levels. Optimism over a planned meeting between the leaders of the United States and China this morning as well as confirmation of a U.S. and South Korea trade deal yesterday alleviated some concerns of a potential slump in economic activity and bolstered the outlook for oil demand. It was expected that the meeting between President Trump and President Xi could result in a reduction in U.S. tariffs on Chinese goods in exchange for Beijing’s commitment to curb exports of fentanyl. The front month Brent contract for December delivery increased by 52 cents day-on-day to close the session at $64.92 a barrel.

Markets this morning

NBP contracts have retraced some of yesterday’s gains so far this morning. On its final day trading as the front month contract, November 25 last went through at 79.50p per therm, a discount of 1.06p on last nights’ close. Activity on the prompt market is quiet, although reduced flows via the Langeled pipeline due to maintenance at the Troll field could provide support. The GB system is currently showing a significant surplus of 28.8 mcm/day, which could hamper on potential gains on the Spot market. A potential truce in terms of tariff wars between the U.S. and China has weighed on crude markets, with the front month Brent contract last showing a 43 cent discount to its previous close.