Gas prices go down amid higher output from Norway

Gas prices continued their downward trajectory on Monday amid higher Norwegian output and cooling Middle East tensions.

The biggest moves were posted across the near-curve, with the May 24 front-month contract shedding a considerable 0.12p/kWh when compared to its previous close.

Increased Norwegian supply likely helped, according to data from offshore operator Gassco, flows into the UK’s Easington and St Fergus terminals saw an increase of circa 19% when compared to the previous gas-day amid the conclusion of unplanned maintenance.

Easing geopolitical tensions in the Middle East likely also helped take the pressure off. Israel reportedly fired at least one missile into Iranian territory on Friday morning in retaliation to the missile barrage launched at Israel one week earlier, although the response from Iran was relatively muted leading many to hope that a wider conflict in the region can be avoided for now.

Natural gas prices are relatively unchanged this morning, with most being offered very much in line with their previous settlement at time of writing.

The UK is currently consuming 35.09 GW’s of electricity (10:30 – 11:00).

Wind has picked up a bit today and is currently generating 6.10 GW’s (16.27%) of the UK’s total electricity demand with gas the largest contributor at 10.48 GW’s (27.94%) of the total.

If you want to see more information on the wholesale market trends subscribe to our weekly report here.