Wholesale prices soften as gas storage levels remain strong
Gas prices continued to soften at the NBP on Wednesday amid stronger Norwegian flows and high storage levels.
Relatively small losses of no more than 1p/therm (0.03/kWh) were posted across the majority of curve contracts as market participants continued to assess winter supply fundamentals.
An uptick in Norway-UK exports may have played into the bearish sentiment; data from offshore operator Gassco shows that nominat ions into Great Britain have gradually increased over the past few sessions.
On Wednesday, flows via the Langeled interconnector were expected to reach 60.1mcm/d, representing an increase of 45.5% when compared to the same day last week. The Netherlands-UK BBL interconnector also remains on standby to provide supplementary flows during peak demand periods, further diversifying UK supplies this winter.
On the storage front, both Great Britain and the EU possess above average stocks for this time of year. Data from Gas Infrastructure Europe shows that overall EU gas storage stands at 94.64% as of 8th October.
In other news, Hurricane Milton is now moving out of Florida after making landfall as a Category 3 storm overnight, before slowing into a Category 1 storm as it moved through the state’s interior, still causing widespread damage. No damage to major energy infrastructure has been reported at time of writing.
This morning, gas prices have opened slightly higher when compared to yesterday’s close, with the November 24 front-month 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 