Reports of skirmishes between US and Iran edges prices higher

Gas prices at the NBP edged higher on Friday amid reports of skirmishes between US and Iranian vessels in the Persian Gulf.

These reports reinforced concerns about fragility of the ceasefire. US CENTCOM said its forces had disabled two Iranian oil tankers attempting to breach the American blockade, which still remains in effect.

Looking at storage fundamentals, EU levels currently stand at around 35% of capacity, this is roughly 7% lower than the same time last year, which itself was seen as less than ideal at the time.

A tough injection season lies ahead for Europe, who is beginning to see a yearly decline in imports from the Middle East and increased global competition for LNG cargoes.

Power prices also firmed on Friday, reflecting a more cautious market sentiment across energy markets on Friday.

A decline in average wind generation across last week was serving as a secondary source of support for the prompt and the near-curve.

According to data from Elexon, wind averaged 5.7GW across last week, falling from 7.6GW the week prior. This bolstered demand for gas-fried power (CCGT) which nearly doubled from 4.6GW to 8.9GW over the same period.

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