Prices correct higher amid shaky geopolitical and supply issues
A bullish session at the NBP yesterday as prices corrected higher on shaky geopolitical and supply fundamentals.
According to data from ICE, the Winter 26 front-season contract moved 5p/therm higher when compared to its previous close, with market participants growing concerned about LNG cargo availability and refilling requirements over the next few months.
Capacity restrictions for Europe’s largest pipeline supplier Norway will average at a rate of around 40mcm/d across the rest of this week before spiking to 182.6mcm/d next Wednesday 20th.
Though planned and expected to be short lived, any delayed maintenance next week has the potential to amplify bullish sentiment as supply is more stretched than last year.
Baseload power prices also swung higher on Monday, finding support from a bullish wider energy complex.
According to data from ICE, the NBP Gas, Brent Crude and Carbon EUA benchmarks posted gains of 4.6%, 2.9% and 2.7%, respectively. This reinforced upside at both the front and rear ends of the curve.
Entering week 20, we saw renewable generation on a firmer footing compared to the end of last week.
Elexon data shows that wind averaged at a rate of 10.4GW on Monday, making up around 32.5% of the GB power mix.
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Price commentary courtesy of Crown Gas and Power 