Little price movement as markets assess latest global developments

NBP gas prices fluctuated within a narrow range on Thursday as fundamentals remained broadly unchanged when compared to the previous session.

Mixed moves of no more than 1p/therm (0.03p/kWh) were posted in each direction across the majority of the curve, as market participants paused to assess global developments.

Strong LNG imports continued to help ease pressure throughout the day, with send out rising by a further 11% day-on-day and up to 12 vessels expected at UK terminals by 14th December (National Gas and shipping data).

Weakness on the European carbon market has likely helped to keep a lid on price drops across this week. According to data from ICE, the Carbon EUA benchmark contract fell by circa 1.2% yesterday, extending losses to a cumulative 3.2% since Mondays close.

Uncertainty surrounding fluctuating weather conditions likely continued to serve as a key source of price pressure. According to the latest 14 day model, demand is expected to frequently shift between above and below average, largely on the back of varied temperature, wind and solar conditions throughout the period.

This morning gas prices have softened slightly, with the Summer 25 front-season contract currently being offered circa 1.5p/therm (0.05p/kWh) lower when compared to its previous settlement, at time of writing.

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Price commentary courtesy of Crown Gas and Power