Prices swing as market focuses on low gas storage levels as Autumn approaches

Following three consecutive days of price reductions, the bulls regained control at the NBP on Friday, although the drivers behind the upward momentum remain largely unchanged.

European continental storage continues to be a key focus point for markets as stocks currently sit at approximately 69% capacity; around 5% below the same period last year.

Meanwhile, the ongoing conflict in the Middle East remains a source of underlying support for natural gas prices, with regional tensions remaining high following statements of condemnation from Egypt, Kuwait, and Jordan over the recent Houthi drone attack on the Saudi capital, Riyadh.

On the power front, baseload prices unsurprisingly mirrored the trajectory of gas contracts, posting day-on-day gains following consecutive sessions of losses, likely underpinned by the same fundamental factors.

However, a sharp decline in solar generation may also have lent some support to near-term contracts, with National Grid data showing solar output down over 27% compared to the previous session.

This morning, both natural gas and baseload prices have observed a revision to their previous settlements.

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Price commentary courtesy of Crown Gas and Power