Gas prices stable after days of volatility
Gas prices were much more stable on Wednesday, a welcome break from recent volatility.
The biggest moves were posted further out, with the Summer 26 contract edging 0.03p/kWh above its previous close as longer term risks including a bleak LNG outlook detracted from high storage levels.
On the LNG front, only laden 2 vessels are anticipated to arrive at UK terminals over the next 7 days as favourable EAX LNG (East Asia Index) prices continue to divert supplies of the fuel away from Europe.
Furthermore, LNG send-out flows into the NTS remain constrained; data from National Gas shows that LNG accounted for only 9mcm of British supply across Wednesday’s session, a stark contrast to the figure of 70mcm that was measured for the same date last year.
The aforementioned above-average storage levels across Europe likely continued to serve as a price ceiling for contracts across the near-curve. According to the latest data from Gas Infrastructure Europe, aggregate EU storage levels stand at just over 69% capacity, the highest figure recorded for that date since May 2020 and a massive 19% above the 10-year moving average.
This morning, gas prices have opened at a slight discount when compared to yesterday’s close, with the Winter 24 front-season contract currently being offered circa offered 0.026p/kWh below its previous settlement at time of writing.
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