Prices ease amid reports of a proposed 10-day ceasefire in the Middle East

Gas prices opened in bullish territory once again before easing in early afternoon trading, potentially brought down by reports of a proposed 10-day ceasefire aimed at reviving diplomatic negotiations between the US and Iran.

While hostilities continue mediators are reportedly seeking a temporary truce following the breakdown of the previous ceasefire arrangement, which collapsed amid renewed tensions and incidents in the Strait of Hormuz.

Despite the intraday weakness, further reductions at the front-end were perhaps limited by a subdued LNG outlook.

The latest shipping indicate that no LNG cargoes are scheduled to arrive at UK terminals for the remainder of July, leaving the current monthly arrivals three cargoes less when compared to the previous year.

On the power side, baseload prices followed the upward trajectory of the gas market, perhaps supported by persistent supply concerns.

Heatwaves across Europe are placing pressure on generation assets, most notably in France where high river temperatures have forced output restrictions at five nuclear reactors.

The resulting reduction in nuclear generation has tightened supply fundamentals and contributed to the bullish sentiment in power markets.

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Price commentary courtesy of Crown Gas and Power