Strong supply and warm weather continues to help ease prices
Strong supply and subdued demand combined to further ease gas prices on Monday.
The biggest losses were posted across prompt and near-curve contracts, with the March 24 front-month contract tumbling an additional 0.10p/kWh below its previous close.
Robust Norwegian exports likely played into the bearish sentiment; according to data from offshore operator Gassco, flow nominations via the Langeled pipeline totalled 72mcm across Monday’s gas-day, just below the pipelines nameplate capacity and enough to meet 28% of total British demand.
Downwards momentum filtered further along the curve, although losses here were considerably smaller, likely tracing moves across the carbon market. The Carbon EUA benchmark contract shed an additional 3.2% day-on-day and has lost a massive 10.5% of its value when compared to just one week ago (data from ICE).
Prices are relatively unchanged this morning, with most being offered very much in line when compared to their previous settlement.
In terms of electricity demand, if we check the latest half hourly period at the time of writing (09:30 – 10:00), electricity demand is currently 38.22 GW’s in the UK.
30.73% (12.19 GW’s) of the UK’s total electricity is being generated from wind turbines at the moment, with gas having to contribute slightly more at 14.59 GW’s (36.78%).
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