Gas prices dip amid high storage levels
Gas prices dipped on Friday, with high storage levels and bearish carbon futures combining to ease the situation.
Modest losses of no more than 1p/therm (0.03p/kWh) were posted across the majority of the curve, with the Winter 24 front-season contract managing to break back below the 100p/therm psychological level.
Above-average storage levels in continental Europe no doubt helped with the latest data showing that aggregated stocks have now reached 75.05% capacity, perfectly in line with the same date last year [75.10%] and a substantial 9 percentage points higher than the 5-year moving average (data from Gas Infrastructure Europe).
Contracts further out may have traced weakness within the carbon market, data from ICE shows that the Carbon EUA benchmark contract plunged 1.6% when compared to its previous close.
On the LNG front, only 1 laden vessel is expected to arrive over the next 7-day outlook. The Port of Milford arrival schedule shows that ‘Rias Baixas Knutsen’ is set to offload US volumes at South Hook LNG terminal on 27th June, if delivered, this would be 1 of only 3 cargoes to have berthed at British terminals since 28th May.
Gas contracts continue to head south this morning, with the July 24 front-month contract last trading circa 0.5p/therm (0.17p/kWh) below its previous settlement, at time of writing.
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