Prices pull back but remain at levels not seen since energy crisis in 2022
Natural gas prices pulled back from three-year highs on Friday, with the market concluding a 4-day bull run, though prices still held at levels not seen since the energy crisis.
The Iran conflict continued to serve as the prime source of support for the curve, with contracts further out notably correcting higher as fighting continues with no clear end in sight.
A shift in focus toward energy infrastructure later last week inflamed bullish sentiment as damage to key facilities has the potential to impact global supply and demand for much longer than the closure of key supply routes like the Strait of Hormuz.
The CEO of QatarEnergy said on Thursday that damage to the major Ras Laffan LNG export hub could take 3-5 years to repair as a result of Iranian strikes the previous night.
The baseload power curve continued to mirror price movements on natural gas and crude oil markets due to the significant role fossil fuels play in the wider European generation mix.
According to data from Elexon, British wind generation averaged 8.6GW across last week, almost halving from 15.2GW the previous week.
This left power prices more exposed to strength across the wider energy complex, with more gas-fired generation being required to meet system demand.
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Price commentary courtesy of Crown Gas and Power 