Low demand forecast helps ease price pressure
NBP gas prices posted modest losses on Friday but still closed at a slight premium week-on-week.
Low demand fundamentals continued to exert downward pressure to contracts along the near-curve, according to the latest run of our 14-day model, demand is expected to outturn below seasonal norms until at least 25th May, coinciding with forecasts of above-average temperatures over the same period.
A gradual recovery in renewable output helped may have helped to soften baseload power prices on Friday.
According to data from National Grid, solar, wind and hydropower made up a combined 26.4% of the generation mix, prompting a reduction in gas-fired demand from 39.5% to 30.1% when compared to Thursday.
Apparent progress was also made over the weekend regarding potential peace talks between Russia and Ukraine.
European leaders from countries including the UK, France, Poland and Germany met with Ukraine’s President Zelensky on Saturday and called for Russia to agree to a 30-day, unconditional ceasefire starting Monday.
Russia’s President Putin counter-proposed that Russian and Ukrainian officials meet in the Turkish capital of Istanbul on Thursday, therefore it may be a few days before the date, venue and feasibility of any such negotiations becomes apparent.
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Price commentary courtesy of Crown Gas and Power 