Prices increase amid significant cooling demand across Europe

Gas prices edged higher during early trading on Wednesday and maintained those modest gains throughout the session.

The upward momentum was likely supported by stronger than usual demand, as most of July is forecast to be hotter than average across Europe and North Asia.

This sustained heat could drive up demand for cooling, potentially increasing gas consumption and creating ongoing risks for energy supplies, at a time where Europe is focussed on replenishing storage levels ahead of the upcoming winter season.

The power market appeared to track movements in the gas market on Wednesday, with baseload prompt prices recording small gains by the close of the session.

A decline in solar generation perhaps contributed to the upward pressure, as National Grid reported an 18% drop in solar output compared to the previous day.

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Price commentary courtesy of Crown Gas and Power