Prices edge higher supported by geopolitical uncertainty
Natural gas prices at the NBP market inched higher on Wednesday, supported by geopolitical uncertainty and persistently weak LNG send out.
Although recent signals suggested the US and Iran were moving closer to a ceasefire agreement, an Iranian strike on a Kuwaiti airport, a country that has seen little conflict since April, has renewed doubts over the likelihood of a deal being reached, potentially adding upward pressure to contract prices.
LNG supply also remains tight with the latest shipping data indicating that only one laden vessel is expected to arrive at UK terminals this month.
On the power side, baseload contracts largely mirrored movements in the gas market despite strong renewable output.
National Grid data shows wind output surged by roughly 153% day on day, sharply reducing reliance on gas fired generation which fell by around 67% when compared to the same period. However, a notable 27% drop in solar output perhaps helped limit potential downside and providing a floor for prices.
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Price commentary courtesy of Crown Gas and Power 