Prices fall to almost 6 month lows amid muted demand

The NBP resumed its downward trajectory into the weekly close, with contracts along the near-curve posting losses of just over circa 1p/therm (0.034p/kWh) when compared to their previous settlements and testing 6 monthly lows.

Muted demand over the past couple of weeks has helped to sure up the British storage levels ahead of a downtrend in temperatures expected from 17th November and lasting until at least 23rd November.

Steady LNG sendout and consistent Norwegian pipeline flows continue to underpin supply, with minimal maintenance disruptions in Norway and regular LNG cargo arrivals helping to reinforce the short-term supply outlook.

Wind generation began to ease during the final days of the week, which increaed pressure. However, contracts further along the curve continued to track the downward movement in gas and carbon markets.

Looking ahead, wind output is forecast to fall significantly below the robust levels seen over the past couple of weeks, reducing renewable supply.

Despite this, the ongoing weakness in gas prices is helping to mitigate the projected costs of gas-fired power generation, offering some relief to the broader power market outlook.

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Price commentary courtesy of Crown Gas and Power