Mild temperatures supports EU strorage injections

Yesterday’s market saw a partial reversal of Tuesday’s increases as mild temperatures support storage injections across Northwest Europe.

Although gas storage levels in Great Britain remain significantly below those recorded at the same time last year, subdued demand has encouraged shippers to redirect supplies toward storage facilities.

According to data from Gas Infrastructure Europe, overall EU storage injections have picked up noticeably in recent days.

This uptick has been largely driven by mild temperatures in Germany, the Netherlands and France. However, firm demand in other parts of Europe have kept increases in stocks relatively modest.

Bearish gas prices, alongside general weakness across the wider energy complex exerted downward pressure on the baseload power curve.

Coinciding with the rising share of gas-for-power within the generation mix, lower gas prices have softened the short-term price outlook for fossil fuel generation costs.

According to data from ICE, the Brent Crude and Carbon EUA benchmark contracts fell by 1.4% and 1% respectively, serving as secondary sources of pressure.

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Price commentary courtesy of Crown Gas and Power