Mixed price movement amid geopolotical pressures and drop in renewable output

NBP gas prices edged higher on Tuesday, correcting upward from a monthly low posted in the previous session.

A meeting of the UN General Assembly in New York was the primary focus for global markets as President Trump spoke on numerous issues including global conflicts, climate change, immigration and the effectiveness of the UN as an institution.

Trump also urged the UK Government to reverse course on its green energy push and policies that restrict oil and gas extraction from the North Sea basin.

Trump also criticised the EU’s continued purchases of Russian LNG. The market had only a muted response to this last remark, as the EU has recently called for an accelerated phase out of Russian fossil fuel imports.

Baseload power prices decoupled from their gas counterparts on Tuesday, with falling renewable generation serving as a source of underlying support over the past few sessions.

Bullishness on oil and carbon markets continued to serve as a secondary source of the increases, with the Brent Crude benchmark posting gains of 1.6% day-on-day (data from ICE).

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Price commentary courtesy of Crown Gas and Power