Market drops despite continued fighting in Kursk region of Russia
The market dropped a little at the NBP on Tuesday, despite fighting in Russia’s Kursk region entering its seventh day.
The biggest losses were posted at the front-end, with the September 24 front-month contract shedding 2.5p/therm (0.08p/kWh) when compared to its previous close, thanks in part to weak gas demand and steady supplies.
Pipeline flows from Norway over the past few sessions have likely helped. According to data from offshore operator Gassco, nominations into Great Britain’s Easington and St Fergus terminals totalled 64.6mcm on Tuesday which was enough to meet approximately 39% of total demand across the gas-day.
At the same time, the market may have been erasing risk premiums associated with uncertainty surrounding flows via the Sudzha transit point. Despite the stations proximity to ongoing fighting between Russia and Ukraine, flows have remained uninterrupted and data from Ukrainian system operator GTSOU indicates that volumes even rose slightly yesterday.
On the LNG front, data from the Port of Milford Haven shows that the laden vessel ‘Clean Copano’ is set to offload US volumes at South Hook terminal on Saturday 17th, making it only the second vessel to arrive so far in August. Gas prices have opened at a slight premium this morning, with the Summer 24 front-season contract currently being offered circa 2p/therm (0.07p/kWh) when compared to its previous settlement, at time of writing.
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Price commentary courtesy of Crown Gas and Power 