Prices dip amid an oversupplied system
Gas prices dipped at the NBP on Monday, marking a correction after five consecutive days of gains.
This modest retreat suggests that market participants are now taking stock, re-evaluating the recent bullish run against a backdrop of evolving supply and demand fundamentals.
Our latest 14-day weather forecast indicates that actual consumption is expected to remain below seasonal norms over the next two weeks.
As a direct consequence of this subdued demand, the British gas system was oversupplied by 5.2 mcm/d as of 15:00 London time, according to data from National Grid.
Despite an overall bearish market sentiment, baseload power prices remained relatively stable throughout the session, with many contracts trading within a narrow range of their previous settlements.
A decline in solar power generation likely supported near-term contracts, while surging wind output may have offset any significant upward momentum.
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Price commentary courtesy of Crown Gas and Power 