Markets remain nervous amid reports of damage to an LNG tanker

A slight upward shift into the weekly close at the NBP on Friday was reported as Global commodity markets continued to assess geopolitical developments in the Middle East closely as reports emerged of damage to an LNG tanker last Wednesday.

The Gaslog Salem sustained damage after a Floating Storage and Regasification Unit (FSRU) it was loading volumes onto, the Energos Winter, was struck by an unidentified drone in the Port of Damietta, Egypt.

Below average European storage levels continued to serve as a longer-term source of pressure. According to data from Gas Infrastructure Europe, EU storage stood at 57.1% on 1st August, which was around 11.7% lower than on the same date last year.

This morning, despite an initial dip at the open, the market is now trading very much in line with Friday’s close, at time of writing.

A notable drop in renewable generation during the second half of last week provided firm support to near-curve power contracts on Friday.

With wind and solar output pulling back, the grid was forced to rely far more heavily on gas-fired power generation to balance demand, a shift that directly amplified upward price momentum and compounded the bullish signals already coming from natural gas markets.

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Price commentary courtesy of Crown Gas and Power