Milder temperatures help ease wholesale prices
Gas prices continued their downward trajectory at the NBP on Monday, amid milder temperatures and the commencement of peace talks in Saudi Arabia.
Downwards movement was posted across all contracts, with near-term contracts experiencing the most significant price drops.
The March-25 front-month contract, for instance, saw a substantial decline of more than 7p/therm (0.24p/kWh) when compared to the previous day’s settlement.
Milder weather likely helped ease near-term supply concerns and played into the bearish sentiment.
Our latest 14-day forecast indicates that temperatures are expected to rise over the coming days, reaching above 10°C on Thursday and Friday. Peace talks regarding the Ukrainian/Russian conflict continue to dominate the news cycle.
Although there has been no formal announcement, the potential return of some Russian nominations into Europe could play a role in the negotiations.
This morning, gas prices opened in bearish territory, with the Summer-25 contract last offered around 2.75p/therm (0.09p/kWh) below its previous settlement.
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Price commentary courtesy of Crown Gas and Power 