Prices continue downward trajectory amid comments of positive talks between US and Iran
Gas prices resumed their downward trajectory on Tuesday as commodity markets continued to digest Donald Trump’s comments about two days of ‘very good and productive talks’ despite denial from Iran that they had taken place.
Elevated risk premiums and concerns surrounding Europe’s below average storage levels served as a firm price floor, limiting downside potential.
According to data from Gas Infrastructure Europe, continental storage stocks stood at 28.42% as of 23rd March, significantly below 33.83% on the same date last year, which was considered a low level at the time.
The NBP continues to head south at time of writing following reports that a 15-point plan has been issued to Iran.
The baseload power curve also posted moderate losses by yesterdays close, guided lower by NBP weakness and a strong rebound in renewable power generation.
Elexon data shows that wind generation averaged at a rate of 21GW on Tuesday, up from 7.9GW the day prior. Overall, renewables accounted for around 64% of the GB generation mix, weighing heavily on gas-fired (CCGT) demand, which fell to just 8% over the same period.
Bullish carbon futures seemingly reinforced the far-curve, with contracts further out posting smaller losses after the EUA benchmark lifted to a near two-week high in response to increased optimism about the Iran War.
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Price commentary courtesy of Crown Gas and Power 