Low storage levels pressures prices at the NBP
Gas prices swung in both directions at the NBP on Wednesday, with the market caught between a heavy LNG arrival schedule and persistently low European storage.
Contracts across the curve opened softer, likely reflecting the supportive LNG outlook, as shipping indicate that as many as 13 laden vessels could berth on British shores before the end of February.
The early bearish tone faded during afternoon trading as prices sharply rebounded perhaps driven by a supply concerns.
European storage levels remain a key concern with data from Gas Infrastructure Europe showing inventories at just 43.5% of capacity, a steep 12 percentage point decline compared to the same time last year.
On the power side, baseload contracts broadly mirrored the volatility seen in gas.
A sharp decline in wind generation perhaps supported prompt prices; National Grid data indicated that output fell by roughly 60% day-on-day.
The shortfall pushed the system towards greater reliance on CCGT, where offtake surged by around a huge 88% compared with the previous period.
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Price commentary courtesy of Crown Gas and Power 