Wholesale market continues downwards trajectory

Gas prices continued their downwards trajectory helped in large part by the easing of supply concerns thanks to Russian and Norwegian flows.

The September-24 front-month contract posted some of the largest moves of the session, shedding a considerable 2p/therm (0.068p/kWh) when compared its previous settlement. Many other contracts followed the same sentiment (although losses were smaller).

According to offshore operator Gassco, the planned maintenance for late September at the Karsto facility has been revised down by circa 10mcm/d.

Additionally, reports show that flows into continental Europe via the Sudzha pipeline have remained within normal expected volumes despite ongoing advances of Ukrainian forces into Russian territory.

Furthermore, a weakening wider energy complex played into the bearish sentiment. According to ICE both the Brent Crude and EUA markets posted day-on-day losses to their respective benchmark contracts, with carbon prices shedding circa €1/tonne and oil falling for its fourth consecutive session; plunging by a further $1.15/barrel.

This morning gas prices have opened relatively unchanged when compared to their previous closing prices, however many contracts are yet to trade at time of writing.

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

Price commentary courtesy of Crown Gas and Power