Wholesale gas prices ease despite ongoing issues
Day ahead natural gas prices retraced some of the previous sessions gains on Tuesday despite overall bullish fundamentals.
The change in direction was seen across near-curve contracts where losses of up to 0.38p/kWh were posted when compared to their previous close.
Prices at the front-end were perhaps pressured by milder temperatures and subsequently lower than expected gas demand. According to data from National Gas, system demand was 40mcm/day below seasonal norms, remaining largely unchanged from the previous session.
However, further losses were perhaps limited by an unplanned outage at Norway’s Oseberg field. Data from offshore operator Gassco shows the facility experienced processing problems on Tuesday, resulting in 17.5mcm/day being taken offline throughout the gas day.
Today (25/10/2023), gas prices have opened in slightly bullish territory with the Summer-24 contract last offered circa 0.03p/kWh above its previous close, however many contracts are yet to trade at time of writing.
Given that wholesale price volatility is not going away for quite some time, we really recommend tracking the latest wholesale market trends so you can make a more informed decision on renewal.
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