Prices ease amid subdued consumption
Gas prices at the NBP eased on Friday amid below-average demand levels.
Losses were observed across the curve, with the most pronounced movements once again concentrated at the front-end. The Winter-25 contract fell by over 1.5 p/th (0.051 p/kWh) compared to its previous settlement.
The downward pressure was perhaps driven by subdued consumption, with National Grid data indicating that actual gas demand was approximately 17 mcm/d below seasonal norms.
Baseload power prices mirrored the downward trend seen in gas markets, with the Winter-25 contract shedding 1.20 £/MWh from its previous close. Near-dated contracts were potentially influenced by a sharp increase in solar generation.
According to National Grid data, solar output rose by an impressive 49% day-on-day, potentially offsetting the decline in wind generation and helped ease any short-term supply concerns.
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Price commentary courtesy of Crown Gas and Power 