Wholesale prices react to consistent LNG imports

Gas prices fell on Tuesday amid consistent LNG flows and continued volatility across financial markets.

The most significant decline was posted on the Winter 25 front-season contract, which shed just over 4p/therm (0.14p/kWh) of its value, when compared to the previous close.

A steady stream of LNG cargoes signalling for the UK likely continued to exert pressure on front-end contracts.

According to the latest shipping signals, three vessels are expected to arrive at British terminals over the next seven days, two of which are laden with US volumes, with another coming from Qatar. If all three vessels arrive as planned, total cargoes could reach eight for April, up from just three during the same period last year.

European gas hubs may have also weakened in response to sharp losses on the US S&P 500 market index, which saw a brief sell-off on Monday following comments by US President Donald Trump.

In a social media post over the bank holiday weekend, Mr Trump called on Federal Reserve Chair Jerome Powell to cut interest rates “pre-emptively”.

This, among other comments directed at the US’s independent central bank, may have influenced US stock markets on Monday, but major indices eventually closed higher by Tuesdays close.

Nevertheless, energy markets continue to broadly trace movements in financial markets due to the potential for a slowing global economy to curb demand expectations in the medium to long term.

The NBP has opened at a slight premium this morning, with the May 25 front-month contract last trading circa 1.5p/therm (0.05p/kWh) higher when compared to its previous settlement, at the time of writing.

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Price commentary courtesy of Crown Gas and Power