Prices continue downward trajectory amid a lack of updates from the Middle East

NBP gas prices continued to push lower on Thursday, with the Winter 26 front-season contract reducing to the lowest levels since 17th April as updates on the Middle East conflict faded into the global news backdrop amid a lack of continuous developments.

A combination of extremely high temperatures and below average wind generation across large swathes of Europe has kept British gas demand elevated above seasonal norms across this week.

Though air-conditioning is not commonplace in the UK and Ireland, there is far more cooling-related CCGT demand in mainland Europe, directing Norwegian and LNG export capacity away from British terminals, offering similar price support.

The GB power mix remained dominated by gas-fired generation on Thursday, continuing the week’s established trend.

According to Elexon data, combined-cycle gas turbines (CCGT) accounted for 35.4% of total generation.

While a slight recovery in wind power was observed, it was largely offset by a steady drop in interconnector imports, keeping supply margins tight.

This squeeze follows news that France’s EDF temporarily shut down two additional nuclear reactors due to elevated river water temperatures, joining a reactor taken offline on Monday and compounding broader output reductions across the country’s massive nuclear fleet.

Surplus French nuclear power plays an important role in balancing the power grids of neighbouring countries, including the UK.

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Price commentary courtesy of Crown Gas and Power