A day of mixed moves amid ongoing tensions in the Middle East

It was a day of mixed moves at the NBP on Thursday, with gas prices opening lower before reversing course and rallying during afternoon trading.

Ongoing tensions in the Middle East continued to lend support to the market, keeping supply security concerns firmly in focus.

Those concerns were perhaps intensified yesterday following reports that Iran has instructed the Houthis to close a key shipping route in the Red Sea should the US proceed with threats to target energy infrastructure.

The route has become increasingly important amid continued instability in the Strait of Hormuz, with Saudi Arabia currently diverting up to 70% of its energy exports through the Red Sea.

On the power front, baseload prices showed far more subdued movements than their gas counterparts, despite a second consecutive day of declining wind generation.

National Grid data shows that wind output fell by 25% day-on-day, once again increasing the system’s reliance on CCGT offtake which rose by circa 11% over the same period.

However, stronger solar generation perhaps helped to offset some of the bullish pressure.

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Price commentary courtesy of Crown Gas and Power