Prices continue downward trajectory amid strong diversified supplies

The market resumed its downward trajectory on Monday amid strong, diversified supplies.

On the LNG front, the BW Pavilion Aranthera docked at Milford Haven, delivering a Peruvian cargo, while 10 more vessels are signalling for UK terminals over the next three weeks, 8 of which are outbound from the US.

LNG short-term storage is roughly on par with the same time last year and there is still ample capacity to facilitate scheduled arrivals.

LNG is currently comprising around 20% of the GB supply mix and has room to climb further. EU storage remains near 83% full, and milder weather expected in Northwest Europe for the short-term may offer opportunity to build a buffer over the target level.

Baseload power prices moved lower on Monday, driven by strong wind output and milder temperatures. Natural gas prices also eased, adding to the downward pressure on power contracts.

While the gas decline was more modest, the combined effect signalled improving short-term supply conditions.

Renewable generation outlook remains supportive. Wind output is forecast to stay elevated through the week, providing a solid contribution to the grid.

Solar generation will be limited due to seasonal factors, but overall renewable supply should continue to serve as a price ceiling for near-term power prices.

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Price commentary courtesy of Crown Gas and Power