Prices reduce as cold snap ends
Gas prices resumed their downward trajectory at the NBP on Wednesday, reversing the gains made in the previous session.
Low demand and mild temperatures eased prices at the front-end, with the March-25 contract posting the largest moves of the session, shedding 5p/therm (0.17p/kWh) when compared to its previous settlement.
According to data from National Grid, actual demand was more than 38 mcm/d lower than seasonal norms on average throughout Wednesday’s session, likely due to reduced heating usage.
Our latest 14-day demand forecast model indicates that temperatures are expected to remain above seasonal norms until at least Thursday 27th February with temperatures as high as 11°C on Thursday and Friday of this week.
A positive outlook on the LNG front may have also contributed to the bearish sentiment. The latest shipping signals suggest that up to seven laden vessels could berth on British shores before the end of February.
This morning, gas prices opened in positive territory, with the Summer-25 front-season contract last trading around 1p/therm (0.3p/kWh) above its previous closing price at time of writing.
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Price commentary courtesy of Crown Gas and Power 