Prices increase amid supply issues and Russian attacks on Ukraine

NBP gas prices rebounded on Monday following what Ukraine described as the largest aerial assault since the start of the war with Russia.

According to Ukrainian officials, Russia launched 810 drones and 13 missiles on Sunday.

A residential tower and the Kyiv Government building, located near Ukraine’s Parliament, were damaged. This marks the first time a government building has been caught in the crossfire, though it remains unclear whether it was directly targeted or damaged by falling debris from an interception by the city’s aerial defences.

Issues with supply continued to offer a source of underlying support for further increases, with Norwegian maintenance expected to continue restricting export flows to the UK over the next couple of weeks.

The baseload power curve also posted significant gains, tracking bullishness on gas and carbon markets.

According to data from ICE, the Carbon EUA benchmark contract settled at a near 7-monthly high of €77.17/tonne on Monday, supporting both natural gas and electricity wholesale costs.

Wind generation reportedly had to be supressed on Sunday due to low system demand, ultimately reaching an average of 16.4GW (54.5% of the GB mix) but is shaping up to be lower week-on-week after relatively strong levels last week.

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Price commentary courtesy of Crown Gas and Power