Below average gas storage levels edges prices higher
Gas prices at the NBP edged higher on Friday, posting their third consecutive day of gains.
Below-average European storage levels continue to serve as a long-term, underlying source of support at the front end of the curve.
According to data from Gas Infrastructure Europe, aggregate EU levels stood at 72.4% as of Saturday 3rd October, approximately 10% below the same date last year, highlighting increased injection requirements heading into a winter supply season marked by uncertainty.
Reports of intense conflict close to the Bab-el-Mandeb Strait, a vital shipping lane serving as the southern gateway to the Red Sea, met a mixed response this morning, leaving prices largely unchanged from Friday’s close.
Moving in step with gas, baseload power finished the week slightly higher on Friday despite a noticeably softer generation mix.
Wind output strengthened from 25.8% of the stack to 41.0%, while gas-fired generation fell from 40.0% to 28.0%, lifting renewables from 43.7% to 56.9%.
Ahead of the weekend, market participants eyed renewed Hormuz and Bab el-Mandeb concerns, alongside the expected return of nuclear units at Heysham 1 and Hartlepool.
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Price commentary courtesy of Crown Gas and Power 