Wholesale prices increase amid reduction in gas from Norway
A reduction of gas flows from Norway combined with a wider bullish energy complex to propel gas prices at the NBP on Wednesday.
Bullish sentiment was seemingly concentrated at the front-end with the August 24 front-month contract posting the biggest gains after surging 3.3p/therm (0.11p/kWh) above its previous close.
A gradual increase in offline Norwegian capacity may have served as a key source of the increases; data from offshore operator Gassco shows that 36.59mcm of supply was unavailable on Wednesday, with ‘corrective maintenance’ at Visund field curtailing production at a rate of 10mcm/d until Monday 29th.
Contracts further out may have found additional pressure from substantial gains observed on the carbon market. According to data from ICE, the EUA Dec 24 benchmark contract posted its largest move in over 2 months (since May 20th) after registering gains of 4.1% when compared to its previous settlement.
This morning, gas prices have so far continued their upward trajectory, with the Winter 24 front-season contract currently being offered circa 1.5p/therm (0.05p/kWh) above its previous settlement at time of writing.
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Price commentary courtesy of Crown Gas and Power 