Above average gas storages helps ease wholesale prices
Gas prices eased at the NBP on Monday amid bearish oil market and high storage levels.
Considerable losses of circa 2.5p/therm (0.08p/kWh) were posted across the front-end, helping to unwind some of the gains accumulated over the previous 5 sessions.
Europe’s primary oil benchmark fell sharply on Monday as energy markets sighed a breath of relief that Israel’s retaliatory strikes on Iranian territory did not target oil and gas infrastructure. According to data from ICE, the Brent Crude (Oil) benchmark contract saw steep losses of 6.1% when compared to Fridays close. Smaller losses were also observed on carbon and coal markets.
On the storage front, aggregated EU facilities are currently 95.31% full which is around 3.5 percentage points below the same date last year (98.66%) but still slightly above the average for this date over the prior 5 years (92.47%), helping to boost confidence in supplies ahead of winter (data from Gas Infrastructure Europe).
Gas prices are relatively unchanged this morning, with both the front-month and front season each being offered not too far from their previous settlements, although many contracts have yet to trade at time of writing.
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Price commentary courtesy of Crown Gas and Power 