Supply concerns force wholesale prices up
Gas prices continued their upwards trajectory at the NBP on Friday amid lingering supply concerns.
The majority of contracts posted gains of circa 1p/therm (0.03p/therm) when compared to their previous settlements, likely due to the ongoing conflict in the Middle East. According to the latest reports, Iranian officials have stated that it will retaliate to the assassination of Hamas’s political leader in Tehran but have signalled the desire to avoid a war.
It was a different story on the prompt however, where small losses were observed, possibly due to a surge in wind-output. According to data from National Grid, wind generation increased by around 185% between Thursday and Friday, subsequently reducing reliance on CCGT (combined cycle gas turbine) offtake which saw a drop of circa 50% when compared to the same period.
Furthermore, a fresh shipment of LNG perhaps limited further gains being made. According to the Port of Milford Haven, the 176,000cbm vessel ‘La Mancha Knutsen’ arrived on British shores late Friday morning, marking the first LNG shipment to arrive in more than 3 weeks.
Wholesale prices have however come down this morning with the Winter-24 contract last trading around 3.3p/therm (0.11p/kWh) less when compared to its previous closing price.
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Price commentary courtesy of Crown Gas and Power 