Daily (19.07.2019): NBP spot slumped by 4% on Thursday, due to increased supply and weak demand

19/07/2019 10:07 Daily


Crude oil prices continued their downward evolution on Thursday, influenced by lower U.S. equities markets. Prices were also weighed by an expected rise in the U.S. offshore oil output, as platforms have been returning to service after the Hurricane Barry passed through the Gulf of Mexico last week. Brent crude sank by 2.7% to $61.93 a barrel, while WTI futures dipped by 2.6% to $55.30 a barrel. 

British gas prices lost ground on Thursday, as the end of outages at Norway’s Aasta Hansteen and Troll fields drove higher flows from Norway. Moreover, stronger wind generation is expected to curb demand from gas-fired power plants. Adding to the bearish market sentiment, two Qatari LNG cargoes are due to arrive in Britain by July 25. The NBP spot price tumbled by 4% to 29.00 p/therm. The contract price for delivery in July 2020 fell by 1.7% at 44.48 p/therm. 


European spot power prices posted gains on Thursday, due to limited power output from wind turbines and the prospect of a rising demand on fears of a heatwave next week. The German day-ahead power contract traded 2% higher at 44.81 EUR/MWh. The price for the equivalent French contract surged by 3.5% to 42.39 EUR/MWh. 


On the curve, electricity prices extended losses, as bearish carbon, oil and gas prices continued to weigh on forward power contracts. The price for the German power contract for delivery in 2020 declined by 0.4% to 51.48 EUR/MWh. Similarly, the price for the equivalent French contract edged down by 0.3% to 53.34 EUR/MWh. 


EU carbon prices slumped in the third consecutive weak auction on Thursday, tracking a sluggish energy complex, while traders saw a “short-term correction” after the recent rally. The 2019-expiry contract lost 2.4% to end at 27.78 EUR/tonne.


Iran: Gas field discovered with $40 billion worth of reserves

15/10/2019 14:18:00

A new gas field with 13,000 billion cubic feet of recoverable reserve and 385 million barrels of condensate, valued at $40 billion, has been discovered in Fars province, southern Iran.


Aberdeen oil firm to be acquired for £382 million by Nigerian rival

15/10/2019 14:14:00

Aberdeen-based Eland Oil & Gas is set to be acquired for £382 million by Nigerian oil firm Seplat.


Daily (15.10.2019): NBP spot spiked by 21.3% on Monday, due to lower send-out rates from LNG terminals and weaker wind output

15/10/2019 12:50:00

Crude oil prices fell on Monday on doubts about a China-U.S. trade deal. China declared that further discussions were needed, while U.S. reported that tariffs on Chinese imports are still set to take effect on Dec. 15, if a deal is not reached by that time. A rise in U.S. dollar also put pressure on prices. Hence, Brent crude fell by 1.9% to $59.35 a barrel, while WTI futures dropped by 2% to $53.39 a barrel.