Strait of Hormuz closure continues to pressure of NBP prices

The NBP resumed its upward trajectory on Monday as a pause on most exports through the Strait of Hormuz continued to elevate the risk element of wholesale pricing.

Over the weekend, targeted Iranian strikes prompted Bahrain’s Bapco to declare Force Majeure after the country’s state-owned refinery was hit.

Meanwhile, LNG deliveries into UK terminals remain robust, with plenty signalling for arrival in the near term.

However, competition for supply may intensify between Europe and Asia, as the shutdown of Qatar’s LNG infrastructure is expected to weigh more heavily on Asian markets.

Similar bullishness was observed across the baseload power curve on Monday, as contracts continued to track strength across the wider energy complex.

The Brent Crude benchmark contract closed at the highest level in over 3 years, with staggering net gains of 35.8% having been built up on the contract since the US-Iran conflict began at the end of February.

The NBP Summer 26 front-season has netted 75.7% in that period, with skyrocketing prices for both fuels serving as a robust source of support for fossil fuel generation.

If you want to see more information on the wholesale market trends subscribe to our weekly report here.

Price commentary courtesy of Crown Gas and Power