Day ahead prices react to Norwegian capacity restrictions
It was a day of two halves with day ahead gas prices on Monday as Norwegian capacity restrictions pressured prompt contracts, all while a bearish wider energy complex applied pressure to curve contracts.
Although gas prices had opened in bullish mode, afternoon trade gave way to a late sell-off that saw near-curve prices shed 0.09p/kWh when compared to their previous close.
Norwegian supply disruptions likely contributed to gains day ahead prices. Data from offshore operator Gassco shows that the Nyhamna and Kårstø processing facilities had unplanned outages that combined to remove 43.9mcm/d across the gas-day.
However, contracts further out reduced following tumbling oil and carbon prices. According to data from ICE the Brent Crude and Carbon EUA benchmark contracts posted day-on-day losses of 3.3% and 0.8% respectively, with the latter closing at its lowest level since 16th January!
On the LNG front, shipping signals indicate that 9 laden vessels are currently enroute to berth at British terminals over the next 3 weeks.
In other news, the North Sea Transition Authority (NSTA) has issued another 27 licences relating to the development of new oil and gas projects across the UKCS (UK Continental Shelf) as part of a drive to boost UK production over the next few years and sure up domestic supply.
Natural gas prices have opened in softer territory this morning, with the Summer 24 front-season contract currently being offered 0.07p/kWh below its previous settlement, at time of writing.
We really recommend that you track the latest wholesale market trends so you can make a more informed decision when your contract comes up for renewal.
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