Wholesale prices drop as markets await Russia US talks

NBP gas prices dropped on Thursday with the Winter 25 front-season contract closing just north of the year-to-date low from 29th April as markets await the much-anticipated Russia-US talks in Anchorage, Alaska, scheduled for Friday 8pm (UK time).

The return of Russian pipeline flows to Central Europe via the Nord stream pipeline may well be discussed as part of concessions but its reactivation appears very unlikely due to several pieces of EU legislation introduced since the pipeline was damaged and shutdown in 2022.

This includes the REPowerEU strategic plan, which bans new long-term contracts for Russian gas and supports a broader shift away from Russian energy.

A combination of cheaper gas and strengthening wind generation promoted bearishness on Thursday.

Temperatures across Northwest Europe are expected to ease over the next few days, easing cooling demand in the continent and paving the way for higher French export capacity.

However, uncertainty around how long temperatures will hold nearer to seasonal norms may be lending support to the near curve and limiting further downside.

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Price commentary courtesy of Crown Gas and Power