Gas prices head up but good storage levels limit rises
Gas prices corrected upwards on Wednesday, surrendering some of the losses accrued over the previous 3 sessions.
The biggest moves were once again observed at the front-end, where gains of circa 0.07p/kWh were posted when compared to the previous close.
Bullish sentiment was likely muted by steady supplies from Norway, a busy LNG schedule and above average EU storage levels. According to the latest data from Gas Infrastructure Europe, continental storage facilities are holding at just above 90% capacity, which is 3.5 percentage points above the same date last year and comfortably above the five-year average of around 82%.
In other news, the COP28 summit concluded in Dubai yesterday. After extensive deliberation, representatives from 198 countries struck a deal to commit to a ‘transition away from fossil fuels’.
Gas prices have resumed their downward trend this morning, with the January 24 front-month contract currently being offered 0.06p/kWh when compared to its previous settlement, at time of writing.
If we check the latest half hourly period at the time of writing (10:30 – 11:00), electricity demand in the UK has increased to 44.74 GW’s with the milder weather helping.
48.50% (21.70 GW’s) of the total is being generated from gas at the moment with wind turbines contributing 9.82 GW’s (21.95%) and Nuclear the next biggest contributor at 10.64% (4.76 GW’s).
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