Market Insights 08/04/2025

DAILY MARKET REPORT – 08/04/2025

A weak start to the markets at the open seen yesterday but strengthened later on in the session as countries started to accept the US standing strong on its tariffs and comments appeared to show that most were seeking to ‘do a deal’ in order to mitigate them.

Mixed comments around potential 90 day delays to tariffs taking effect were cast aside with senior politicians claiming around 70 countries had now approached the US to discuss a way forward.

China had issued a counter increase of 34% tariffs on all US products, to match those set by the US, to which the US insisted these are cancelled by today else face an additional 50% from tomorrow.

With the energy mix outlook perhaps not as dire as expected in the immediate aftermath at the end of last week, markets then showed some recovery.

Yesterday saw the TTF Front Month contract settle at €37.00 (from €36.40) and the NBP Front Month contract at 90.77p (from 88.75p).

Aasta Hansteen and Dvalin on unplanned outage this morning and we see a Norwegian flow nomination level at 313mcm (304). EU gas storage showing at 34.96% (34.76%) full as per AGSI+. LNG vessels due to arrive in UK the next couple of weeks is 2 (3).

This morning we see the Front Month TTF contract at €37, NO CHANGE to the previous settlement.

A quick check on some key contracts (rounded to nearest whole):
Curve TTF Front Month €37, Front Season €38 (vs €37 and €37)
Curve NBP Front Month 91p, Front Season 99p (vs 89p and 96p)
UK Gas NBP spot 87p (from 88p)
UK Power Base spot £84 (from £88)

UK power prices show the UK Front Month Baseload contract at £73 (£73) and Front Season at £83 (£84).

In other areas of the market Brent Oil is at $64 ($66) and EUAs are at €63 (€64). Henry Hub is at $3.66 ($4.84) and JKM is at $12.78 ($12.92) with TTF Equiv of $11.85 ($11.76).

Numbers in brackets show the previous reports value.