Several Norwegian outages further hamper efforts to increase European storage levels

The NBP bull run extended into a fourth session on Monday, with the Summer 27 front-season contract closing another 3.7p/therm (0.13p/kWh) higher and just shy of psychological resistance at 180p/therm.

Several Norwegian outages are further hampering European efforts to reinforce regional storage levels.

According to data from offshore operator Gassco, the Sleipner and Oseberg fields were seeing reduced output on Monday due to infrastructure issues. Åsgard field joins them today after its planned maintenance was ‘prolonged’. The Kårstø and Kollsnes processing hubs are also seeing reduced throughput, testing market confidence in short-term supply.

On a more bearish note, Saudi, Pakistani and Turkish officials met Iranian leaders in Tehran on Monday to discuss regional security, with Iranian media suggesting talks will continue.

Closely mirroring movement on the gas market, baseload power overlooked a more favourable generation mix on Monday.

Wind output strengthened from 50.1% of the stack to 54.6%, while gas-fired generation edged up from 14.3% to 15.1%, leaving renewables at 66.4%.

Instead, the market priced in a less forgiving outlook, with an expanding high-pressure system set to bring stagnant, low-wind conditions to northern Europe from Thursday.

Southern Norwegian hydro reserves are also at multi-decade lows, limiting the import buffer. Partial relief came from France, where improved river flows are expected to bring Chooz’s two 1.5 GW units back by the end of October.

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Price commentary courtesy of Crown Gas and Power