Tentative peace dialogue between US and Iran helps stablise market
The NBP saw a slight upward correction on Thursday amid news of tentative peace talks between the US and Iran.
The US and Iran have reportedly agreed a framework for a 60-day ceasefire extension, though this is still without final approval from the US President and Iranian leadership.
Mentioned in the draft proposals (and of primary concern for energy markets) is the potential lifting of restrictions for shipping via the Strait of Hormuz and the clearing of Iranian mines.
Iran’s enriched uranium reserves remain a key sticking point, slowing diplomatic progress, though this does not directly impact global energy flows.
Planned maintenance scheduled for October and November has been dismissed by Norwegian operator Gassco over the past few days, notably at the Åsgard field and Kårstø processing facility.
Comfortable generation margins limited movement across baseload power contracts on Thursday.
According to data from Elexon, renewable sources (wind, solar, hydro, biomass) met a combined 59.7% of demand yesterday. This helped with the reliance on gas-fired (CCGT) which was required to meet just 15.2% of overall demand.
Mixed movements across the wider energy complex are likely to have nullified the influence of adjacent markets on gas and power.
ICE data shows that, while the benchmark contract for Brent Crude fell 0.6% day-on-day; Carbon EUA costs continued to rise steadily, adding another 1.8% to their value in yesterday’s session.
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 