Gas prices narrow amid mixed moves on the wholesale market
Day ahead natural gas prices observed mixed moves on Thursday with all contracts trading within a narrow range.
After opening in bullish territory, volatility eased mid-morning and remained low throughout the session.
By the end of the gas-day the majority of contracts posted losses of up to 0.05p/kWh when compared with their previous close.
An upwards revision to weather forecasts likely added pressure at the front-end. Our latest 14 day gas demand forecast shows temperatures across week 44 are now expected to be in line with seasonal norms. A declining carbon market may have also added further pressure. ICE data shows the EUA benchmark contract continued its downward trajectory, shedding over €2/tonne when compared to the same time last week, reaching its lowest level seen since October 3rd.
Gas prices have opened in bullish territory at the NBP once again this morning (27/10/2023) with the Summer-24 front-season contract last trading circa 0.07p/kWh when compared to its previous settlement.
Given that wholesale price volatility is not going away for quite some time, we really recommend tracking the latest wholesale market trends so you can make a more informed decision on renewal.
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