Wholesale market eases amid high gas storage levels
NBP gas prices softened on Friday amid bearish oil futures and high storage levels.
Small, incremental losses of no more than 1p/therm (0.03p/kWh) were posted across the majority of contracts as the market continued to move within a narrow range.
According to data from ICE, the Brent Crude (Oil) benchmark contract eased by around 1.9% compared to its previous close, as market participants reviewed weaker-than expected Chinese economic data, an indicator of long-term demand.
On the storage front, above-average levels in both the EU and UK continue to help ease pressure at European gas hubs ahead of winter. According to data from Gas Infrastructure Europe, overall EU storage levels now stand at 95.18%. Although this is slightly behind the same date last year (98.02%), this figure remains comfortably above the 5-year average for this date and positions the EU well ahead of its 90% target by November 1st.
This morning, the market has opened at a slight premium when compared to its previous close, with the Summer 2025 front-season contract currently being offered approximately 0.75p/therm (0.026p/kWh) higher when compared to its previous settlement, at time of writing.
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Price commentary courtesy of Crown Gas and Power