High demand increases pressure on wholesale prices
Offline North Sea capacity combined with higher UK demand to lift gas prices at the NBP on Thursday.
The bull run continued following on from a brief retracement in Wednesday’s session, bullish sentiment appeared strongest at the front-end, with the November 24 front-month contract posting daily gains of circa 4p/therm (0.14p/kWh)- the biggest moves of the session.
Unplanned maintenance at two Norwegian gas fields likely served as a key source of support at the front-end. According to data from offshore operator Gassco, extended maintenance at Åsgard combined with a compressor failure at the major Troll field to remove 23mcm/d of production capacity.
These events are not expected to be resolved until at least Saturday morning, limiting export capacity into Great Britain. The British demand outlook remains somewhat bleak, with the latest run of our 14-day model indicating that demand will average above seasonal norms until at least 17th October which could slow the pace of storage injections into British facilities.
This morning, gas prices have so far continued their upward trajectory with the Summer 25 front-season contract currently being offered at a slight premium of 1p/therm (0.03p/kWh) when compared to its previous settlement, at time of writing.
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Price commentary courtesy of Crown Gas and Power 