Wholesale prices fluctuate within a narrow range

Bearish sentiment prevailed at the NBP on Thursday as gas prices continued to fluctuate within a narrow range.

Volatility was once again slightly more pronounced at the front end, with losses of circa 2.75p/therm (0.09p/kWh) posted across the near-curve on the back easing supply risks and weaker carbon, coal markets.

Several LNG export facilities across the US Gulf Coast were ramping back up on Thursday after Hurricane Francine ripped through the area across Tuesday and Wednesday, leaving minimal damage to oil and gas infrastructure in its wake. This in turn may have removed an element of risk from European gas prices, due to the region’s heavy reliance on LNG imports, particularly those from the United States.

Losses posted across the wider energy complex may have further helped ease the price curve, according to data from ICE the Carbon (EUA) and Rotterdam Coal benchmark contracts saw day-on-day losses of circa 1.4% and 1.8% respectively.

At the same time, data from Norwegian operator Gassco shows that scheduled maintenance at the UK’s Easington terminal is set to conclude early on Monday morning, allowing for the resumption of flows via the Norway-UK Langeled pipeline, thus bolstering British supplies. On the storage front, facilities across the EU are currently 93.24% full, which is around 6 percentage points higher than the 5 year moving average (data from Gas Infrastructure Europe).

This morning, gas prices have opened at a slight premium when compared to their previous close, with the October 24 front-month contract currently being offered circa 1.25p/therm (0.04p/kWh) above its previous settlement, at time of writing.

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Price commentary courtesy of Crown Gas and Power