An uncertain geopolitical outlook drives up prices

NBP gas prices continued to go upon Wednesday, supported by persistent near-term supply risks and a fragile geopolitical landscape.

Market sentiment remains cautious, with limited visibility on the trajectory of negotiations between Russia and Ukraine.

Since Monday, the Kremlin has signalled that President Putin may be unwilling to meet with his Ukrainian counterpart, President Zelenskyy—casting further doubt over any potential diplomatic breakthrough and adding to market uncertainty.

The renewed ramp up in Norwegian maintenance is already squeezing pipeline flows into Great Britain, with nominations for today projecting a flow level of 51.3mcm, down from 58.6mcm on Mondays gas-day.

UK power prices moved higher in tandem with the wider energy complex (gas, oil, coal & carbon) despite a recovery in wind power.

An uncertain geopolitical outlook also served as a primary source of support for power prices due to the interconnected nature of power with energy commodity markets.

Wind overtook gas yesterday as the largest source of power across Great Britain, averaging 28.6% of the generation stack, further reducing gas-fired power demand.

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