Geopolitical tensions drives gas prices up
Growing geopolitical tensions propelled natural gas prices higher on Thursday.
Gas prices opened in positive territory and continued to climb throughout the session with the Winter-24 contract surpassing the 90p/therm psychological barrier and gaining almost 6p/therm (0.2p/kWh) when compared to its previous settlement, the largest day-on-day gain seen since 12th October 2023!
The ongoing Russia/Ukraine conflict continued to underpin bullish sentiment with news of Russian strikes targeting two underground gas storage facilities on Thursday, fueling supply concerns.
Additional upside could also be attributed to growing tensions in the Middle East. According to reports, Israel is preparing for a possible major attack from Iran, potentially threatening to rock oil prices further.
Gas prices have opened in positive territory once again this morning, with the Winter-24 contract currently being offered around 1p/therm (0.034p/kWh) higher that yesterdays close.
The UK is currently consuming 35.34 GW’s of electricity (10:30 – 11:00).
Wind is currently generating 14.82 GW’s (40.51%) of the UK’s electricity with gas only having to contribute 1.57 GW’s (4.29%) at the time of writing.
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