Prices climb again amid futher issues around security of supply in the Middle East

The NBP reversal seen at the end of last week was proven short-lived by Monday trading, with the Winter 26 contract climbing by circa 7.5p/therm (0.26p/kWh) to close at 207.5p/therm.

This is the highest closing price of any front-season contract since January 2023.

Middle East supply concerns intensified following reports of drone damage to Saudi Arabia’s East-West pipeline on Thursday, 10th September.

Built in the 1980s to bypass the Strait of Hormuz during the Iran-Iraq War, the 746-mile pipeline had seen elevated usage during recent disruptions.

However, reports yesterday indicated repairs will take several weeks, leaving this key transit route largely unoperational. Though it is a crude oil transit route, this precision attack on infrastructure that is able to bypass Hormuz spurred bullish sentiment across the rest of wider energy complex.

Renewable generation remained strong over the weekend and into Monday.

According to data from Elexon, wind power made up 27.6% of the GB power mix yesterday, though gas served as the largest source of generation at 37%.

A relatively steady system helped to shield baseload prices from some of the elevated volatility we saw on the adjacent NBP.

This morning, both gas and power prices have continued to trade in a wide range, with the NBP Winter 26 contract currently being offered circa 3.5p/therm (0.12p/kWh) below its previous settlement, at time of writing.

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Price commentary courtesy of Crown Gas and Power