Wholesale prices increase amid tensions in Middle East
NBP gas prices resumed their upward trajectory on Tuesday as geopolitical tensions supported energy markets.
Higher LNG flows may have helped to offset supply concerns in the Middle East amidst the ongoing conflict, with slight upside of 1.4p/therm (0.05p/kWh) posted across the near-curve.
According to data from National Gas, British LNG send out averaged circa 32mcm across the session, highlighting a more than three-fold increase when compared to Monday.
Despite this increase in supplies the system remained predominately undersupplied as demand continues to hold above seasonal norms. LNG fundamentals are looking positive on the whole, with the arrival of the Orion Sun from Qatar last Wednesday and 2 further vessels signalling for UK terminals by the end of the week (data from Milford Haven port and shipping signals).
This morning, the Summer 25 front-season contract has opened at a small discount of circa 1.5p/therm (0.05p/kWh) despite last night’s reports of a large Iranian strike on Israel that BBC reports cite as being in the region of 180 missiles.
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Price commentary courtesy of Crown Gas and Power 