Gas prices at 3 month lows amid strong supplies

Gas prices fell to more than 3-month lows at the NBP on Friday as strong supplies outpaced demand.

The British system was forecast to close at a net long position of circa 13mcm as of 4pm (BST), supporting storage injections and pipeline exports to continental Europe.

LNG arrivals at UK terminals continue to trend slightly higher than last year, further reinforcing confidence ahead of winter.

Global energy markets are expected to adopt a cautious stance this week, with Presidents Trump and Putin (and potentially President Zelenskyy) scheduled to meet in Alaska on Friday in a bid to negotiate a ceasefire in the ongoing Russia-Ukraine conflict.

French nuclear output remains a key concern heading into week 32, as soaring temperatures across Europe threaten the safe operation of reactors.

Elevated water temperatures could force partial or full shutdowns on safety grounds, with cooling systems potentially operating outside their safe thermal range.

France plays a pivotal role in supporting regional power grids, and sustained above-average heat may prompt national system operators to rely more heavily on costly gas, oil and coal-fired generation to meet rising cooling demand.

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Price commentary courtesy of Crown Gas and Power