Supply concerns continue to pressure markets

Supply concerns continued to lift gas prices even higher on Thursday.

All curve contracts posted day-on-day gains with the September-24 front-month contract posting the largest moves of the session, gaining more than 3.5p/therm (0.12p/kWh) when compared to its previous settlement.

Alongside ongoing tensions in the Middle East, a heatwave striking parts of Asia also raised concerns surrounding LNG supply and likely helped to fuel bullish sentiment. Japan (previously the world’s largest LNG importer) is one of the countries experiencing the adverse heat, prompting concerns across European trading hubs of further competition for gas shipments as cooling related demand increases.

Furthermore, a surging carbon market likely added support to contracts further along the curve. According to data from ICE, the Carbon EUA benchmark contract posted gains of circa €2/tonne.

This morning gas prices have eased slightly at the NBP with the Winter-24 contract last trading circa 0.75p/therm (0.026p/kWh) below its previous closing price at time of writing

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Price commentary courtesy of Crown Gas and Power