Prices fall for third consectutive day amid renewed diplomatic efforts around Strait of Hormuz

Gas prices continued their downward trajectory at the NBP on Wednesday, posting losses for a third consecutive session.

According to data from ICE, the Winter 26 front-season contract closed at the lowest level in over 3 weeks as reports of renewed diplomatic efforts to alleviate risks to international shipping via the Strait of Hormuz.

A spokesperson from Iran’s Foreign Ministry said later on Wednesday that Iran and Oman were in the ‘final stages’ of an agreement to open a new route for commercial shipping.

The specifics of the agreement are not known but it is widely understood from previous statements that Iran intends to charge vessels that are passing via the strait.

We’ve seen a clear upward correction this morning, but the front-season continues to trade about 6% lower than at the same time last week.

Power generation fundamentals have been largely driven by strengthening wind output so far this week, flipping last weeks pattern of heavy gas-fired demand and reliance on cross-border imports.

Data from Elexon shows that wind power dominated generation on Wednesday, averaging at a rate of 15.1GW or 47.4% of the GB mix.

Combined renewable output (wind, solar, biomass, hydro) met exactly two thirds of Great British demand yesterday, marking the best day for low carbon power in several weeks.

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Price commentary courtesy of Crown Gas and Power