Wholesale prices hit lowest point since March 2024
The NBP continued its downward trajectory on Tuesday, closing at the lowest level for any front-season contract since 28th March 2024, after breaking and holding below a psychological support level at 70p/therm (2.4p/kWh).
Year-to-date LNG arrivals at UK import terminals have reached 118, widening the lead on the total reached by this time last year, 87. A further 6 vessels are signalling to arrive at Milford Haven over the next couple of weeks, all of which laden with cargoes from the United States.
The US has accounted for 70% of all cargoes across the past 12 months. Demand is expected to ease back towards seasonal norms from today (Wed 26th) thereafter holding close to average until at least 9th December.
Mixed moves were observed across the baseload power curve on Tuesday. Conflicting bearish and bullish price drivers meant contracts struggled to establish a clear direction.
Losses on natural gas and crude oil markets served as a key source of pressure, all while fluctuating renewable generation and bullish carbon futures played into bullish sentiment.
The Brent Crude benchmark contract posted losses of 1.4% day-on-day amid calming geopolitical tensions thanks to ongoing peace dialogue concerning the War in Ukraine, all while Carbon EUA’s rose an opposing 1.6% on precarious renewable power generation across Europe, including the UK.
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Price commentary courtesy of Crown Gas and Power 