Prices ease amid robust storage and LNG fundamentals
NBP prices ease as robust storage and LNG fundamentals reinforced confidence moving into the winter supply period.
The outgoing Winter 25 front-season contract made a determined push to break below psychological support 85p/therm but lost momentum, ultimately closing just north of this level as Norwegian supply disruptions tempered bearish sentiment.
EU storage levels are steadily approaching the European Commission’s target of 83% capacity by 1st December (at the latest) passing 82.5% as of Sunday 28th. Underlying support came from further unplanned works in Norway.
The Nyhamna facility, crucial for UK imports lost 19.8mcm of capacity yesterday due to compressor failure.
Power prices also saw bearish price action on Monday, mirroring losses on natural gas and crude oil markets. According to data from ICE the Brent Crude benchmark dived 3.1% day-on-day, its biggest decline since 1st August after reports circulated that ministers of the OPEC+ group are expected to push for increased production from November.
Renewables are trending lower as we move further into the week but are expected to shift dramatically as the remnants of Hurricane Humberto reach the British Isles this Friday and over the weekend.
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Price commentary courtesy of Crown Gas and Power 