Subdued demand eases pressure on gas prices

Subdued gas demand combined with above-average storage levels helped to ease pressure on gas price levels on Wednesday.

A well balanced supply and demand outlook for the near-term likely fed into weakness at the front-end, with the July 24 front-month contract plunging by circa 2p/therm (0.07p/kWh) when compared to its previous close.

According to data from National Gas, actual system demand fell to 156.9mcm on Wednesday which was well below the seasonal norm of 201mcm- thanks in part to a 62.5% increase in wind output that eased gas-fired power demand across the gas-day.

At the same time, strong storage levels likely added additional weight to the curve and have long served as an underlying source of pressure for the front-winter contract. The latest data from Gas Infrastructure Europe shows that aggregated EU storage stocks have reached 75.95%, this is on a par with the (same date) last years exceptionally high levels [76.05%] and leagues above the 10 year moving-average of 61.35%.

This morning, natural gas prices have opened firm, with the Winter 24 front-season contract currently being offered circa 0.75p/therm (0.026p/kWh) above its previous settlement, as prices continue to test support and resistance within a narrow range.

If you want to see more information on the wholesale market trends subscribe to our weekly report here.

Back to the Latest News

Our Supplier Panel

The Energy Advice Line is the UK's leading online price comparison and switching service dedicated to small and medium sized businesses in the UK.

Our online quotation engine has been designed to facilitate speedy but accurate commercial electricity and gas prices – all at the click of a button to allow you to search the market for the lowest prices from an extensive panel of suppliers and contract options.

1 5 16 17 13 71 14 110 22 28 44 58 31 51 36 60 46 65 70 79 81

Customers Love Us !

Say 'No' to cold calling on business energy

Unfortunately, business electricity and business gas customers in the UK are bombarded with unsolicited cold calls on a daily basis.

This unscrupulous approach does not offer the business energy customer an impartial view on the market and the price offered is more often 20-30% above the current retail price for electricity or gas.

At Energy Advice Line we strongly advise customers to not accept these offers and follow our simple steps to ensure that they are not locked into an uncompetitive contract.

Join our cold calling campaign here, and spread the word to say 'no' to cold calling on business energy!

Say No To Cold Calling on Business Energy