Prices soften as demand drops and UK receives steady stream of LNG from USA
Prices softened at the NBP on Monday, with small, incremental losses posted on the Summer 26 and Winter 26 front season contracts.
Norwegian exports to Great Britain held strong, with flow nominations for Mondays gas-day totalling 92.8mcm, enough to meet 39% of forecasted demand.
UK production comprised a similar share of supply, averaging at around 90mcm/d throughout the session and LNG met approximately 23% thanks to a steady stream of arrivals from the US.
Strong, diversified supplies persisted alongside forecasts of unseasonably low demand from next Monday, further easing system constraints and providing opportunity for storage injections ahead of this year’s peak demand period.
A more mixed session for power prices, with the prompt and near-curve posting gains amid lagging renewable generation, all while seasonal contracts softened in line with their natural gas counterparts.
According to data from Elexon, wind generation averaged at 12.5GW, this was up from 10GW on Friday, but gas-fired power demand remained buoyed at 11.8GW.
Strength on the EU’s carbon market exacerbated the cost of fossil fuel generation, with the Carbon EUA benchmark contract reaching its highest level in over 2 years after closing at €87.28/tonne.
The UK’s own benchmark (UKA) is currently trading just south of long-term highs, as the two markets are closely linked.
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Price commentary courtesy of Crown Gas and Power 