Prices ease amid less pressured demand forecast

Gas prices continued to decline at the NBP on Friday for the fourth consecutive session.

Losses were observed across the curve, with the March-25 front month contract experiencing some of the steepest declines, shedding 1.8p/therm (0.06p/kWh) when compared to its previous settlement.

Reduced demand likely contributed to the ease the pressure on gas prices at the front end. Our latest 14-day forecast model indicates demand is expected to fall below seasonal norms from Thursday and throughout week 8.

Additionally, a positive outlook on the LNG front likely eased supply concerns as the latest shipping signals indicate that up to seven vessels could arrive on British shores by the end of the month.

In other news, President Donald Trump confirmed on Sunday that Ukrainian President Volodymyr Zelenskiy will participate in peace talks with Russia, following questions about whether the preliminary talks scheduled for later this week would proceed without him.

This morning, gas prices opened relatively in line with their previous closing prices at the NBP.

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Price commentary courtesy of Crown Gas and Power