Prices maintain downward momentum as ceasefire holds
NBP gas prices carried on going down as the Israel-Iran ceasefire held without incident.
Norwegian exports into Great Britain continued to gather momentum, flow nominations rose for a fourth consecutive day to 60.3mcm.
The recent period of planned maintenance has now come to an end, with more works expected at the end of August. Gassco has also indicated that it will increase the technical capacity of the Ormen Lange field from 18.6mcm/d to 31mcm/d from 1st July, increasing export capacity to the rest of Europe and helping to offset the loss of Russian pipeline supply at the end of last year.
A sharp decline in renewable power served as a price floor for UK baseload power contracts.
Mixed movement was observed along the curve. While the near-curve seemingly retraced following Tuesday’s huge sell-off, bearish carbon prices may have helped contracts further out to press even lower.
According to data from ICE, the Carbon EUA benchmark contract declined 3.2% day-on-day. The front-month contract may have encountered resistance from a sudden drop in wind.
National Grid data shows that wind generation fell to an average of 4.5GW, down 68.1% from the previous day and bolstering the need for gas-fired generation.
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Price commentary courtesy of Crown Gas and Power 