Market steady amid balanced supply and demand landscape

The market held steady on Wednesday, holding onto modest gains to prices posted in the previous session.

Market participants continued to weigh subtle shifts in an otherwise balanced supply and demand landscape, with sentiment largely shaped by short-term outlook and infrastructure developments.

According to our 14-day demand model, consumption is expected to dip below seasonal norms in the first week of November, as temperatures trend back into a milder range.

Norwegian flows continue at a steady pace, with total exports to the rest of Europe increasing slightly yesterday following the conclusion of unplanned works at the Åsgard field in the central North Sea.

Baseload power contracts decoupled from their gas counterparts on Wednesday, with most posting small, incremental losses.

This movement largely reflected stronger renewable output, which continued to exert downward pressure on the curve.

Wind generation in particular has been robust, greatly reducing gas-fired demand versus last week. Additionally, a gradual recovery in nuclear availability throughout October has reinforced system stability.

Higher nuclear output has helped cap gas-fired generation requirements and limited the need for cross-border imports from continental Europe.

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Price commentary courtesy of Crown Gas and Power