Prices drop slightly despite extensive maintenance

NBP gas prices reduced slightly into Friday’s close, despite extensive maintenance.

A bearish demand outlook moving later into June may have offered some reassurance to market participants, with supply already tightened by high levels of planned maintenance in Norway.

The latest run of our 14-day model indicates that demand will average just below seasonal norms until at least 22nd June.

On the LNG front, only two vessels are on course for British terminals as of this morning, with the Hellas Diana now expected to offload US volumes at South Hook LNG on 14th June (data from the Port of Milford Haven).

Higher imports, solar generation and slightly lower system demand combined to offset a dip in wind power across Friday.

Generally, baseload power prices continued to trace movements on the Gas NBP and were also observed to slide into the close, posting small losses and closing at a slight discount week-on-week.

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Price commentary courtesy of Crown Gas and Power