Ongoing hostilities in the Middle East adds to gas price volatility
Ongoing hostilities in the Middle East continued to underpin bullish sentiment on day ahead natural gas prices on Friday.
The good news is that ample gas storage levels in Europe helped counter a bullish oil market.
According to data from ICE the Brent Crude benchmark contract saw day-on-day gains of 2.9% amid fears of escalating conflict in the Middle East.
Plentiful storage levels likely helped to keep the prices down. According to data from Gas Infrastructure Europe aggregated EU storage levels now stand at just under 99% full, which is a massive 9 percentage points higher than the blocs mandated target for November 1st.
Volatility has persisted this morning (30/10/2023) following reports that all imports from Israel to Egypt (a key exporter of LNG) have been halted amid mounting conflict in the region. Prices have gapped higher, possibly as result of the news with the November 23 contract last trading circa 0.2p/kWh above its previous settlement, at time of writing.
We really recommend that you track the latest wholesale market trends so you can make a more informed decision when your contract comes up for renewal.
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