Wholesale prices drop as the weather warms up
Gas prices went into freefall during afternoon trade at the NBP on Tuesday.
The biggest losses were posted at the front-end, with the March 25 front-month contract shedding just under 8p/therm (0.27p/kWh) when compared to its previous settlement amid a less pressured short-term demand outlook.
According to the latest run of our 14 day model, demand is set to weaken to below seasonal norms from Tuesday 4th March, coinciding with higher temperatures and stronger renewable output expected up until at least Tuesday 11th.
In other news, according to BBC reports, a senior government official in Kyiv has confirmed that Presidents Trump and Zelensky have informally agreed a deal that will direct a large portion of profits from Ukraine’s rare earth mineral industries to the United States.
In a move that President Trump suggests will serve as form of payment for the several hundred billion dollars that the US has spent on arming and supplying Ukraine since Russia invaded the country in early 2022. The deal is expected to be signed at the White House on Friday.
This morning, gas prices have dropped even further, with the Summer 25 front-season contract currently being offered at the lowest level seen since December 18th after losing another 3.5p/therm (0.12p/kWh) when compared to its previous settlement 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 