Prices held within narrow range amid strong supply fundamentals

The NBP held to a narrow trading range on Thursday, with prices lingering close to multi-month lows despite a brief early-session lift.

That initial increases quickly faded, leaving the market to settle largely flat by the close.

Ample supply once again limited many of the increases, with healthy LNG arrivals, consistent Norwegian flows, and relatively mild weather maintaining a well-balanced system, even as gas-for-power demand picked up slightly.

While the current backdrop suggests the market has carved out a soft floor, sentiment remains fragile.

In the absence of any significant supply-side disruptions, the market remains firmly anchored around the 70p/therm mark.

It will come as no surprise to read the UK power market observed a similar session to gas on Thursday, with initial upside being provided by tighter gas-for-power fundamentals.

Renewables continued to play a significant role in balancing the system, with higher wind generation helping to keep dispatchable fuel demand in check and limiting upside in power prices.

Even as gas-fired generation remained available to cover demand when needed, the combination of robust wind output and stable interconnector flows supported system balance and helped contain volatility.

In the absence of any major supply disruptions or extreme demand swings, the UK power market held firm around its recent trading range, with sentiment largely reflecting steady fundamentals and ample supply conditions.

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Price commentary courtesy of Crown Gas and Power