PPA and Green Gas Markets open lower on profit-taking and some technical selling.
In the underlying markets:
- NBP Gas for September delivery last trades at 88.7 pence per therm.
- The front-month of UK baseload power is at £76.25 MWh.
- We expect that the market will continue to be headline-driven this week due to continued geo-political risks.
Volatility
Price volatility was firmly in force yesterday and this morning across European energy and the broader commodity complex.
PPA and Green Gas markets moved lower yesterday following a broader sell-off in underlying commodities fueled by mounting economic concerns.
Demand-side risks: Global stock markets plunged on Monday, with signs of weakness in the US economy, as traders watched and waited for a Fed response.
Supply-side risks: At the same time, we are also watching for increased geopolitical risks of Iran’s potential retaliatory strikes on Israel, with associated risks of disruption to gas supplies and transit from the region.
This morning, we have seen some of yesterday’s losses recovered, with pricing up off lows in early trade.
- NBP Sep 88.9p per therm
- TTF Dutch Gas €36.35 MWh
- UK baseload power £74.85 MWh
Please let Fran or me know if you want to discuss renewable power or green gas fixing strategy.
Jamie Banks
PPA Manager at New Stream
