NBP Gas prices correct lower on the back of US President speech
The US Presidents speech on Monday night sparked a strong downward correction for NBP gas prices on Tuesday.
The benchmark contracts for natural gas and crude oil fell sharply, with the NBP front-season posting losses of 15.3% alongside Brent crude, which dived 11.3% day-on-day after Donald Trump suggested in a press briefing that the US-Iran war is ‘very complete’ and will be over ‘pretty quickly’.
The comments were however, followed by intensified strikes across the Middle East, limiting the downside potential of the previous nights bearish comments.
More commercial vessels have been struck trying to transit the critical Strait of Hormuz shipping route, and overall traffic from Gulf States has fallen dramatically since the beginning of the war.
Bearish moves across the wider energy complex filtered into the baseload power curve on Tuesday on tentative hopes that an end to conflict in the Middle East could be closer than initially feared.
A rebound in renewables added weight to prompt and near-curve contracts, with wind seeing its best day in over a week, averaging at a rate of 15.5GW, it contributed to around 43% of the GB power mix.
With that said, constrained nuclear generation amid maintenance at a couple of the UK’s reactors and an increase in system demand served to keep the supply and demand balance tight.
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Price commentary courtesy of Crown Gas and Power 