Prices increase amid increased geo political pressure
Tuesday morning’s session at the NBP saw prices increase in an attempt to break out of the narrow range established over the past few sessions.
Downside momentum stalled as the front-winter contract once again encountered firm support just below the 85p/therm psychological level that is currently being reinforced by elevated geopolitical instability in Eastern Europe, overshadowing improving demand fundamentals on the horizon.
According to data from operator Gassco, capacity restrictions will surge to 141.85mcm on Thursday but will fall sharply from that point on, falling to 86.85mcm on Friday before gradually declining to just 19.6mcm by Thursday 25th September.
UK power prices were buoyed by strength across the wider energy complex on Wednesday.
Gains posted across natural gas, crude oil, carbon and coal benchmarks reinforced the power market due to its interconnected relationship with each of these commodities.
Wind generation is expected to dip moving into the second half of this week which likely offered some support to prompt and near-curve contracts.
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Price commentary courtesy of Crown Gas and Power 