Prices down amid planned resumption of gas flows from Norway
NBP gas prices continued to trade in a narrow range on Tuesday, opting to correct slightly higher on uncertain supply and geopolitical fundamentals.
The US-Iran ceasefire continues to hold, but currently, neither side appears willing to agree to terms that would bring the disruption to shipping via Hormuz to an end.
From a supply perspective, capacity restrictions across Norway are expected to ease over the next few days, helping to accelerate injections into European storage facilities.
The respite will be brief however, with 182.6mcm being taken offline on May 20th and works continuing to impact flows to the UK variably until the beginning of July.
A combination of strength across the wider energy complex, and lower renewable generation helped to support baseload power prices on Tuesday.
According to data from Elexon, British wind generation averaged at a rate of 4.9GW across Tuesday, accounting for just 15.5% of the power generation mix.
As a result, gas and carbon strength fed more directly into the power stack, lending further upward support to baseload prices throughout the session.
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