Wholesale market divided amid geopolitical tensions in Middle East
Gas prices were divided at the NBP on Wednesday as the market weighed increasing Norwegian supplies against geopolitical tensions.
Contracts at the frontend likely eased in response to improved short term supply fundamentals. According to data from offshore operator Gassco, flows via the Norway-UK Langeled interconnector reached 68.7mcm (95% capacity) across Wednesdays gas-day following on from a brief period of maintenance on the pipeline.
The recent escalation in tensions between Israel and the Lebanon-based Hezbollah group continues to serve as an underlying source of support for energy markets. Reports have emerged this morning that Israeli Defence Force (IDF) fighter jets have struck several military targets across Lebanon, coming just one day after 32 people were killed and 3,000 injured following the detonation of modified pager devices belonging to Hezbollah operatives.
Gas prices across the curve have opened in positive territory this morning, with the Winter 24 front-season 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 