May 3, 20222 min read

May 2022 - Monthly Wholesale Market Update

Today, the Gas market has Decreased by 44.86% than this time last month with the electric market also down by 20.80%.

NBP gas futures fell on Friday as strong LNG supplies into the UK, with up to 13 tankers scheduled to arrive in the coming weeks, and expectations for warmer temperatures pushed prices lower. Despite a decline in Norwegian supplies into the UK, NBP gas futures have opened lower this morning as planned maintenance continues, as a pessimistic weather outlook and a robust LNG delivery schedule weigh on the market.

Power: On Friday, most UK power contracts fell further as a busy LNG delivery schedule and a bleak weather forecast weighed on the market. The NBP gas market has been pushed lower by a healthy LNG supply outlook, and UK power contracts have opened lower this morning as a result of poor activity.

Brent crude rose in value on Friday as traders reacted to the risk of an EU oil embargo as Germany softened its stance on the idea. However, major gains was restrained by Chinese shutdown limitations, which might reduce demand for oil. As market investors anticipate an EU decision on more penalties on Russia, Brent crude has reversed some of its prior session gains this morning.

Coal: The European API2 Cal 2023 contract was largely flat on Friday, with the contract beginning at $210.00/t and then trading about that level until closing at $209.93/t. The contract opened higher this morning at $213.00/t and is still trading at that level.

Carbon (EU ETS): On Friday, the ICE Dec-22 EUA contract gained further after opening at €82.97/t and closing at €84.45/t. The contract opened lower this morning at €83.30/t and is now trading higher at €84.31/t.

Carbon (UKAs): On Friday, the ICE Dec-22 contract rose, opening at £80.50/t before closing at £80.75/t. The contract began lower this morning at £79.00/t and is now trading at £79.10/t.