Looming Norwegian maintenance propels gas prices upwards
Looming Norwegian maintenance and geopolitical tensions helped to propel gas prices higher at the NBP on Tuesday.
The biggest moves were posted at the front-end, with the September 24 front-month contract surging by circa 4.3p/therm (0.15p/kWh) when compared to its previous close.
The onset of widescale maintenance across Norway likely served as a key source for the price rises, with data from operator Gassco currently indicating that offline capacity will peak at 237.25mcm on 2nd September- which has been revised up from 183.46mcm yesterday.
On the LNG front, intensifying conflict in the Middle East is stoking fears that the Suez Canal may once again become impassible for LNG and oil tankers.
The Greek-flagged oil tanker MV Sounion has been stranded in the Red Sea since being attacked by Houthi fighters on 22nd August. This attack in particular has reignited supply fears because the Houthi group had previously claimed that they were only targeting vessels linked to Israel, the US and the UK.
In other news, missile and drone attacks continue to be exchanged between Russia and Ukraine.
Fires have been reported at an oil depot in Russia’s Rostov Oblast after an alleged Ukrainian drone attack early Wednesday morning, with another fire still burning at another Rostov depot after more than 10 days.
This morning, gas prices are relatively unchanged, with the majority of contracts being offered very much in line with their previous settlements at time of writing.
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Price commentary courtesy of Crown Gas and Power 