NBP softens with prices trading within a narrow range
The NBP curve softened slightly on Tuesday, with natural gas prices fluctuating within a narrow range.
The 120p/therm (3.1p/kWh) level appeared to provide firm psychological support for the Winter 26 front-season contract.
Geopolitical tensions in the Middle East continued to feed underlying support into the curve, rapidly shifting market sentiment as the US-Iran conflict threatens to trigger elevated volatility.
Overnight reports confirmed a US helicopter was downed near the Strait of Hormuz, prompting the US to launch retaliatory ‘self-defence’ strikes inside Iran.
Fresh details are still emerging from the region this morning, with neighbouring countries reporting they have intercepted aerial targets.
Renewable generation has been fairly robust so far this week. A notable increase in solar output in yesterday’s session, paired with steady interconnector imports, has further weighed on demand for gas-fired power generation.
Away from these short-term shifts, the broader baseload power curve remained closely interlinked with the NBP gas market.
The direction of trade maintained a cautious holding pattern throughout the session as market participants actively assessed ongoing tensions in the Middle East alongside the latest near-term weather and demand forecasts.
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Price commentary courtesy of Crown Gas and Power 