NBP prices maintain upward trend with US-Iran peace talks apparently stalled
The sustained upward trend at the NBP continued on Friday, with prices gradually firming across each day of last week.
Geopolitical risk remains centred on the Strait of Hormuz, with US-Iran peace negotiations having apparently stalled.
Recent seizures of Iranian vessels and the persistence of a US naval blockade have fuelled fears of renewed conflict, threatening a chokepoint for 20% of global LNG trade.
European storage sits at roughly 31% capacity – a four year low for April. This deficit calls for greater restocking efforts as LNG supply tightens.
Notably, Qatar has curtailed exports following regional drone attacks, removing nearly 20% of global LNG supply from the market and driving up competition for limited spot cargoes.
Baseload power prices firmed on Friday, moving higher in line with the broader upward trend for energy markets last week.
According to data from Elexon, wind generation averaged at a rate of around 5.6GW across last week, falling by almost half from 10.5GW the week prior.
This reduction in renewable output tightened system margins, lending further support to wholesale prices as demand was increasingly met by higher-cost gas (CCGT) generation.
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Price commentary courtesy of Crown Gas and Power 