Prices continue to ease amid a softer oil market

Gas prices at the NBP continued to retreat on Wednesday, amid a softer oil market and conflicting signals from Washington and Tehran.

Early in the session, bearish sentiment was buoyed by President Trump’s suggestion that US involvement in the conflict could soon wind down.

However, during afternoon trade mixed messages regarding a ceasefire agreement perhaps stoked supply concerns, as President Trump posted to Truth Social that Iran had requested a ceasefire, however Iran’s foreign minister disputed this claim a short while later.

Oil markets perhaps added to the downward pressure with ICE data showing that Brent Crude extended its decline, falling by roughly $3 per barrel day on day.

This marks the first time since the start of the US/Iran conflict that Brent has posted back to back daily losses.

On the power side, UK baseload prices tracked the broader energy complex lower on Wednesday, with additional pressure coming from a rebound in renewable generation.

National Grid data shows that, after a notable dip in the previous session, wind output recovered rising more than 23.5% day on day. This uptick in wind generated supply perhaps helped soften market fundamentals and contributed to the downward move in power prices.

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Price commentary courtesy of Crown Gas and Power