Market Report 16th December 2024

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In today’s market report, we review the week from the 9th to the 13th of December 2024.

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International Gas Market Review

9th Dec 24

Weather conditions provided positive signals for immediate contracts, with the NBP spot price rising by 0.4% to 114.90 p/therm. Forward contracts remained stable, with the NBP Sum-2025 contract closing at 107.89 p/therm, as reduced concerns over potential US sanctions on Russia presented downside prospects, which balanced the effects of increased LNG imports into the UK.

10th Dec 24

British near-term gas prices declined on Monday. The NBP spot fell by 3% to close at 111.45 p/therm, as milder weather weighed on demand. Further along the curve, the NBP Sum- 2025 contract lost over 3%, settling at 104.37 p/therm, driven by increased LNG flows.

11th Dec 24

In the UK, short-term gas prices were bolstered by increased gas-for-power demand due to decreased wind production and outages in Norway. The NBP spot price rose by over 1%, closing at 121.15 p/therm. On the forward curve, the NBP Sum-2025 contract increased, closing 1.3% higher at 105.73 p/therm, driven by rising tensions in the Middle East.

12th Dec 24

In the UK, short-term gas prices decreased on Wednesday, following predictions of milder weather. The NBP spot price fell by more than 2% to end at 110.10 p/therm. On the forward curve, the NBP Sum-2025 also showed a downward trend, dropping 1.4% to close at 104.31 p/therm. Consistent LNG flows further eased supply worries.

13th Dec 24

British near-term gas prices continued to decline on Thursday, driven by forecasts of higher temperatures and strong supplies from Norwegian pipelines and LNG, despite minor disruptions at gas facilities. Consequently, NBP spot dropped by 4%, closing at 105.75 p/therm. Further along the curve, the gas price for Sum-2025 delivery fell by 3%, closing at 101 p/therm, as the market anticipates that the termination of Ukrainian gas transit will have a minimal impact on prices.

International Gas Market Review daily values table

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International Carbon Credit Pricing Analysis

9th Dec 24

European carbon prices bounced back on Friday, aided by a late surge ahead of next week’s options expiry. The EUA Dec-2024 contract increased by 1.4%, closing at 68.31 €/tonne, recovering a significant portion of the value lost during the week’s declines.

10th Dec 24

European carbon prices experienced their largest decline in six months as traders prepared for the December options contract expiry. EUA Dec-2024 prices fell by 3%, closing at 66.37 EUR/tonne, reflecting gas-driven bearish sentiment and continued regulatory uncertainty.

11th Dec 24

European carbon prices increased in line with gas prices, with the EUA Dec-2024 contract rising by nearly 3%, closing at 68.18 EUR/tonne.

12th Dec 24

European carbon prices rose by roughly 0.7% on Wednesday, with the EUA Dec- 2024 contract closing at 68.63 EUR/tonne, just before the option expiry.

13th Dec 24

European carbon prices saw declines on Thursday, affected by lower gas prices, profit- taking after a recent surge, and robust trading activity ahead of the Dec-24 futures expiry. As a result, EUAs expiring in Dec-2024 fell by 3.7%, closing at 66.10 EUR/tonne.

International Carbon Credit Pricing Analysis daily values table

That's all for today. See you in the next newsletter ??