A wasted opportunity

Limited flexibility in the auction schedule for buying pipeline capacity has resulted in an opportunity to profit from the NBP’s premium this winter being lost.

The NBP January and February contracts held a premium to the TTF wider than 4.45p/th from early September until the start of this week. This was enough to cover the cost of buying short-term BBL capacity to the UK from the Netherlands and other fees, such as the commodity charges.

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Saudi Arabia in uncharted waters

Saudi economic officials have issued a slew of statements aimed at reassuring investors — particularly from abroad — following the unveiling of King Salman bin Abdel-Aziz’s anti-corruption committee — headed by his son, crown prince Mohammad bin Salman — and the near simultaneous arrest of 11 princes, tens of past and present ministers, and senior officials and businessmen for investigation by the committee.

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Is complacency priced in?

There is a very strong possibility that tomorrow the basket price of Opec crude will start with a six for the first time since late June 2015. Ice Brent front-month futures have been sixed-up for a few days now.

Quite the fillip ahead of the group’s meeting at the end of this month, when the key – perhaps the only – point of discussion will be how to keep a good thing going.

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