Prices remain within narrow range amid low levels of volatility

Another day marked by low volatility at the NBP as gas prices remained locked in a narrow range.

Market participants appeared to still be digesting developments from earlier in the week, including the EU-US trade agreement and the earthquake in Russia’s far east, which triggered tsunami warnings along the pacific-facing coasts of surrounding countries, notably leading to the precautionary evacuation of Japan’s Fukushima nuclear facility.

These events, combined with ongoing Norwegian capacity restrictions, have contributed to a gradual upward movement in prices over the course of this week.

Baseload power prices also remained largely rangebound throughout the session, reflecting the broader trend of muted volatility across energy markets.

While fundamentals offered little fresh direction, sentiment continues to be shaped by external factors, including geopolitical developments and recent seismic activity in the Pacific region.

The precautionary shutdown of nuclear capacity in Japan, coupled with ongoing natural gas supply constraints in Norway, has increased preesure on prices.

However, with demand levels steady and renewables showing a gradual recovery back towards average, the market has not moved much in the past 24 hours.

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Price commentary courtesy of Crown Gas and Power