NBP prices experience a turbulent session as UN meets in New York City
NBP prices experienced a turbulent session on Tuesday, swinging heavily in both directions.
A sharp morning drop at the front end of the curve was erased by a swift afternoon rebound, leaving prices a touch higher by the close.
Market participants are currently channelling their attention toward the UN General Assembly in New York and sideline commentary from world leaders.
Addressing the Middle East conflict, US President Donald Trump stated he faces a choice between reaching a deal that lets Iran rebuild or choosing to “annihilate” the regime while urging nations to enforce the “complete economic isolation of Iran”.
Turning to global energy markets, Trump called for reopening the Strait of Hormuz, asserting that once the conflict ends, “oil prices will come plummeting down”.
The comments played into existing market uncertainty, provoking rapid swings.
Baseload power prices experienced a similarly volatile session, whipsawing throughout the day as markets struggled to establish clear direction amid heavy geopolitical headlines.
On the generation side, wind output continued to drop, falling from 19.4% to 13.8% of the stack on Tuesday, all while gas generation rose from 36.8% to 46.3%, marking a complete reversal from Friday’s renewable-dominated mix.
Both gas and power markets have opened very much in line with their previous settlements, though relatively few contracts are yet to trade at time of writing.
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Price commentary courtesy of Crown Gas and Power 