Gas prices rebound up amid low LNG supply
Gas prices rebounded on Tuesday, supported by low LNG supply and bullish moves on the wider energy complex.
Tuesday marked a reversal of the previous session’s losses, with the majority of contracts posting upside of circa 0.1p/kWh when compared to their previous close, due in part to a bleak LNG outlook.
Data from National Gas shows that LNG send out averaged just 13mcm across yesterday’s session, which came in stark contrast to the circa 105mcm measured for the same date last year, with higher Asian spot prices and US outages redirecting vessels away from European terminals.
Strengthening carbon and coal prices likely contributed to gains further along the curve, the Carbon EUA and Rotterdam Coal benchmark contracts surged by 4.6% and 1.3% respectively (data from ICE).
The market has opened in softer territory this morning, with the new June 24 front-month contract currently being offered circa 0.05p/kWh below its previous settlement, at time of writing.
The UK is currently consuming 28.66 GW’s of electricity (13:30 – 14:00).
The wind has dropped a lot today! The UK’s onshore and offshore wind turbines are only currently generating 3.13 GW’s (10.08%) of the UK’s total electricity with gas for power now having to generate a much larger 8.42 GW’s (27.10%) of the total. Fortunately the above average temperatures is keeping overall demand lower which might help put a cap on potential increases.
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