Prices rebound as Ukraine and Russia peace talks stagnate
Gas prices rebounded at the NBP on Friday after progress in Ukraine-Russia peace talks stagnated.
The biggest moves were posted at the front-end, with the Summer 25 front-season contract surging more than 4p/therm (0.14p/kWh) above its previous settlement, widening its premium to the Winter 25 contract by around 1p/therm (0.03p/kWh).
It is currently unknown what a Russian counterproposal might entail after Russian President Putin suggested in an interview on Thursday that there were “issues that we need to discuss” when asked about his thoughts on the draft ceasefire agreement following his meeting with US special envoy Steve Witkoff earlier that day.
The uncertainty surrounding potential amendments by Russia and whether they would be accepted by Ukraine has fed a degree of uncertainty and risk into global energy markets.
Lacklustre renewable output may have served as a secondary source for the increases.
According to data from National Grid, wind turbine output was just 2.8GW across Friday’s gas day, accounting for only 8.4% of the British power mix.
This in turn will have bolstered gas-fired (CCGT) power demand, which averaged 51.6% over the same period, further dissuading much-needed storage injections.
The NBP curve has opened in softer territory this morning, with the majority of contracts currently being offered circa 1.5p/therm (0.05p/kWh) below their previous settlements, though most have yet to trade at time writing.
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Price commentary courtesy of Crown Gas and Power 