Market remains cautious amid healthy gas storage levels

Volatility remained subdued at the NBP on Tuesday, with modest, incremental gains to gas prices across much of the curve.

Market participants appeared cautious, balancing robust supply side fundamentals with emerging geopolitical risks.

Norwegian exports reached their highest level since March, meeting more than 45% of British gas demand.

Regional storage levels are also strong, passing 70% fullness yesterday, with several weeks of summer remaining. Concerns linger over President Trump’s 8th August ceasefire deadline for Russia, which could trigger sanctions and disrupt European energy flows if negotiations fail.

Yesterday, UK baseload power season contracts edged higher, mirroring their natural gas counterparts.

This move came despite wind generation contributing over 50% of total output, typically a bearish factor.

The price action highlights growing market sensitivity to winter risks, with market participants increasingly focused on supply security and gas-price volatility.

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Price commentary courtesy of Crown Gas and Power