Prices rebound amid mixed reports of peace deal progress
Gas prices reversed slightly at the NBP on Wednesday after President Trump remarked that progress had been made toward a peace deal to end the US–Iran war.
The initial push below psychological resistance to 138p/therm proved unsustainable, and the Winter 26 front-season contract closed just above 140p/therm (4.8p/kWh) after Iran denied that any such negotiations were ongoing.
Despite this, Mr. Trump agreed to a five-day pause in fighting to allow talks to progress, following consultations with regional allies.
Another report of an LNG vessel being struck over the weekend slowed downward momentum, the Gaslog Shanghai was struck by a projectile whilst attempting to transit the Strait of Hormuz.
Ship traffic remains limited through both the Hormuz and Bal el-Mandeb straits.
Baseload power prices also softened in Monday’s session, tracking a weaker wider energy complex and a modest improvement in British wind generation.
According to data from ICE, the benchmark contracts for Brent Crude and NBP Natural Gas posted losses of 4.7%, 1.9%, respectively.
Meanwhile data shows that wind output increased by 38% compared to Friday, muting demand for gas-fired power.
This morning, both gas and power markets have opened in bullish territory. The NBP Winter 26 front-season contract is currently being offered circa 7p/therm (0.24p/kWh) above its previous settlement at time of writing.
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Price commentary courtesy of Crown Gas and Power 