Market stable amid steady supply and demand fundamentals

Gas prices eased into the close on Friday, netting small weekly losses as market participants weighed lower storage against fairly stable supply and demand fundamentals.

According to data from Gas Infrastructure Europe, continental storage stocks totalled 82.83% on 1st November, more than 12 percentage points below the same date last year.

This relatively lower storage level is partly due to Germany’s strategic reduction target of 70%, compared to the 90% target adopted by most other EU member states.

Germany, which holds the largest storage capacity in Europe, has seen weaker injection rates this year, contributing to the overall decline in regional storage percentages.

Baseload power prices saw mixed movement on Friday, driven by robust renewable generation and contradicting bullishness across oil and carbon markets.

The interplay of strong supply from renewables and upward pressure from the wider energy complex promoted heightened volatility.

NESO forecasts indicate that wind should continue to output at strong levels over the next week or so, helping to keep a lid on the prompt and near-curve.

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Price commentary courtesy of Crown Gas and Power