Wholesale prices being dragged in both directions

Mixed moves were witnessed on Thursday with gas prices across the curve being dragged in both directions.

Prices on the near-curve were likely supported by unseasonably high demand and a drop in LNG send-out while contracts further out posted small losses amid slumping oil prices.

Following a short stint of strong LNG supply, data from National Gas shows send-out dropped by circa 24% when compared to the previous session. Unseasonably high demand also played into the bullish sentiment.

Data shows demand continued to outpace seasonal norms for the ninth consecutive session and was more than 23mcm higher than the seasonal average throughout yesterday’s session .

However, softening oil prices perhaps limited the issue and helped prices further along the curve. According to ICE, the Brent Crude benchmark contract lost value for the sixth continuous session on Thursday, shedding a substantial 8.5% when compared to the same day last week.

In other news, planned maintenance at the Barrow North Terminal which has been ongoing since early September has been extended until the 9th of December.

The maintenance, which is currently reducing flows by 6mcm/day was expected to conclude yesterday but has since been delayed according to a statement issued by National Gas yesterday.

This morning gas prices have opened in bullish territory once again at the NBP with the Summer-24 contract last offered around 0.03p/kWh above its previous settlement at time of writing.

If we check the latest half hourly period at the time of writing (10:00 – 10.30), electricity demand in the UK is 41.97 GW’s.

44.74% (18.82 GW’s) is being generated from gas at the moment with wind turbines contributing 10.47 GW’s (24.89%). Nuclear is contributing at 11.22% (4.72 GW’s) and solar adding 2.62 GW’s (6.24%).

The 4 main sources of electricity account for over 87% of the UK’s generation.

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