Day ahead gas prices continue to spike
Day ahead gas prices continued to surge on Friday amid forecasts of unseasonably cold weather and a surging oil market.
The biggest moves were once again posted at the front end where gains of circa 0.24p/kWh could be seen when compared to their previous close.
Unseasonably high demand likely played into bullish sentiment with the latest 14 day gas demand forecast shows that below average temperatures boosting demand across week 42, playing into the already tight winter supply picture.
Contracts further out likely traced sharp gains on the oil market. According to data from ICE, the Brent Crude benchmark contract saw huge upside of circa 5.7% day-on-day amid growing fears of a potential disruption to oil flows due to the conflict in the Middle East. News emerged in afternoon trade that Bulgaria is set to impose a tax on Russian gas exports passing through the country destined for Hungary, Serbia, and other southern European countries which applied further risk to some of the last remaining Russian pipeline flows into the European Union.
In positive news, US energy giant ConocoPhillips announced on Friday that production has started ahead of schedule at Norway’s new Tommeliten Alpha gas condensate field which is estimated to hold reserves in the region of 150 million barrels of oil equivalent- including 6-9 billion cubic meters of natural gas. Gas prices have opened in softer territory today as a result of this news at time of writing.
Keep a track on the latest wholesale market trends here.
If your electricity or gas contract is up for renewal in the next 6 months, we would encourage you to compare prices now as retail prices are heading back up.
Compare prices online for your meter by clicking here or contact your Energy Advice Line account manager now for the latest information.