Wholesale prices struggle to find clear direction
NBP gas prices struggled to establish a clear direction on Wednesday as strong storage injections offset concerns regarding the end of Russian energy in the EU.
According to data from Gas Infrastructure Europe, continental storage stocks stood at 41.6% full as of 6th May. While this value is 22.1% below the same date last year, it is now higher than 2022 and 2021 following a 28-day run of net injections thanks to unseasonably mild temperatures.
Plans released by the EU to end all Russian energy imports by the end of 2027 prevented further reductions as the continent will need to find gas from alternative sources by this date.
UK Baseload power decoupled from gas prices on Wednesday, with small gains posted across much of the curve.
The latest NESO week ahead forecast indicates that a prolonged lull in wind generation shows no signs of subsiding up until at least 13th May meaning gas (CCGT) is likely to remain the largest source of power generation, with interconnector imports from neighbouring countries, particularly France and Norway, also being relied upon to keep the British grid balanced over this period.
If you want to see more information on the wholesale market trends subscribe to our weekly report here.
Price commentary courtesy of Crown Gas and Power 