Below average storage levels fuel modest increases

Gas prices posted modest gains at the NBP on Thursday, potentially driven by strong demand and below-average storage levels across the continent.

Elevated temperatures continue to fuel high gas consumption throughout Europe, while storage levels currently sit around 13 percentage points below the five-year average (data from Gas Infrastructure Europe), perhaps raised concerns about supply security ahead of the winter season.

The power market once again mirrored movements in the gas market, with near-term baseload prices posting modest gains.

Elevated electricity demand, potentially driven by increased cooling needs, and a notable drop in wind generation.

According to National Grid data, wind power output fell by approximately 21% compared to the previous day, tightening supply and reinforcing the bullish sentiment in the market.

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Price commentary courtesy of Crown Gas and Power