Prices resume downward trajectory amid largely unchanged supply fundamentals
Prices resumed their downward trajectory on Tuesday amid largely unchanged fundamentals.
The pace of losses appeared to have slowed as key contracts held just north of critical long-term psychological levels that served as a key source of underlying support.
No interruptions to Norwegian supply in yesterday’s session, with the highest flows into the UK’s Easington terminal since 24th September.
LNG tank storage trending very much in line with the same time last year, though up to 8 vessels arriving by 13th December should reinforce LNG sendout flows to the NTS (National Transmission System).
On the storage front, EU storage is just below 75% full as of 1st December and withdrawing at a slower rate when compared to last year.
Baseload power prices also edged lower, still moving at a slightly slower pace than natural gas counterparts.
Fluctuating wind speeds expected across the rest of this week are likely to heighten balancing costs, which means market participants may be taking a slightly more cautious tone on power.
A bearish day for the wider energy complex likely served as the primary source of help. According to data from ICE, the Brent Crude and Carbon EUA benchmark contracts reduced by 1.1% and 1%, respectively.
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Price commentary courtesy of Crown Gas and Power 