Wholesale market down as price of oil tumbles

Gas prices dropped again on Tuesday amid easing supply concerns and a tumbling oil market.

All curve prices posted day-on-day losses with the most considerable moves seen at the front-end in usual fashion with the Winter-24 front-season contract shed over 1p/therm (0.034p/kWh) when compared to its previous settlement.

The key source of good news continues to be the partial restart of the Texan Freeport LNG facility which has seemingly calmed nervousness across European trading hubs. The latest shipping signals indicate that one laden vessel from the US is expected to berth on British shores within the next two weeks, perhaps further easing domestic supply concerns.

Furthermore, bearish moves on the oil market likely provided additional support for the reductions. According to ICE data, the Brent Crude benchmark contract has continued its downwards trajectory for the third consecutive session, shedding around 3$/barrel when compared to its previous settlement price.

This morning gas prices have opened firmly in the hands of the bulls; the Winter-24 contract last traded over 1.75p/therm (0.06p/kWh) above its previous closing price.

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Price commentary courtesy of Crown Gas and Power