Prices correct down after Fridays increases on the back of geopolotical tensions

We witnessed a downward correction at the NBP on Monday as prices dropped after Friday’s late-afternoon bull run.

The February 26 front-month contract observed sharp losses of 4.8p/therm (0.16p/kWh) when compared to the previous settlement, though some risk premium lingered and prices were still significantly higher than in Thursday’s session.

The Summer 26 front-season contract also saw a swift reversal, pulling back circa 2p/therm (0.07p/kWh).

With that said, volatility remains heightened and we once again see a bullish open to Tuesday’s session that has largely counteracted yesterdays bearish moves.

Demand, storage and geopolitical tensions are being assessed closely, with all offering firm potential reasons for increases as we advance into the week.

A similarly bearish session for baseload power contracts that mirrored losses on natural gas and carbon markets.

Wind remained limited, lessening day-on-day to 7.5GW (19.7% of the power mix) and gas climbed further to 18.7GW (49%) with the renewable picture for the rest of the week somewhat unclear.

A strong pull back on the EU carbon market served as a key source fopr the drops in electricity prices.

According to data from ICE, the Carbon EUA benchmark contract shed 4.2% of its value by Mondays close, easing fossil fuel generation costs at a time when gas-fired demand is fairly high.

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Price commentary courtesy of Crown Gas and Power