Easing geopolitical tensions helps reduce wholesale price

Easing geopolitical tensions and recent plentiful LNG supplies helped reduce NBP gas prices on Wednesday.

Small, incremental moves were posted at the front-end, with the December 24 and January 25 contracts posting small losses of circa 1p/therm (0.03p/kWh) when compared to their previous settlements.

Reports emerged early on Wednesday confirming that a 60-day ceasefire deal had been agreed between Israel and Lebanon based Hezbollah helped ease tensions around ongoing supply issues. The ceasefire deal ends more than one year of active conflict, with hopes that a longer term peace deal can be achieved in the meantime.

Strong and steady LNG imports likely remained a key focus for market participants. Shipping signals now indicate that up to 10 vessels could arrive at UK terminals by 14th December, helping to reinforce both British and EU storage levels for the winter months ahead.

Furthermore, National Gas data shows that within session send out flows increased by over 12% day-on-day on the back of 3 arrivals already recorded this week.

This morning, gas prices have resumed their downward trajectory, with the Summer 25 front-season contract currently being offered another 1p/therm (0.03p/kWh) below its previous settlement, although many contracts are yet to trade at time of writing.

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Price commentary courtesy of Crown Gas and Power