Prices ease slightly amid conflicting reports on the progress of US-Iran negotiations

The market eased off slightly into the close on Friday as participants processed conflicting reports on the progress of US-Iran negotiations.

Reports of shutdowns across LNG infrastructure in Western Australia emerged as another source of pressure for the NBP curve.

Several export facilities closed as Cyclone Narelle approached the region. Although Australia does not directly supply the European market, mainly due to the sheer distance between the two continents, Australia is a major supplier to markets across East Asia (Japan, South Korea, China) and India. Qatar, which is unable to export cargoes due to the war in Iran, was also a key exporter to those countries so the global supply picture for the fuel is looking increasingly tight.

On Friday, the UK power market remained closely aligned with benchmark contracts across the wider energy complex (gas, oil and carbon) which continued to drive elevated intraday volatility.

Wind generation saw a pronounced uptick over the course of last week, climbing to an average output of 16.1GW, compared with just 8.6GW the previous week.

A new milestone was reached on Saturday around 13:30, when wind turbines were generating at a rate of approximately 23.9GW, setting a fresh all-time record.

Meanwhile, the Brent Crude benchmark closed at its highest level since June 2022, as the ongoing conflict involving Iran continues to disrupt oil flows from the Middle East, tightening global supply dynamics.

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Price commentary courtesy of Crown Gas and Power