Falling demand helps reduce wholesale gas prices
Gas prices corrected lower on Wednesday, with easing demand and a bearish wider energy complex combining to reduce all future contract prices.
Substantial losses were posted across key contracts with the December 24 front-month retreating from recent highs after shedding just over 4p/therm (0.14p/kWh) when compared to its previous close.
An improved demand outlook likely played into the bearish sentiment. According to the latest run of our 14 day model, demand will average well below seasonal norms until at least 13th November.
Bearishness on carbon and coal markets may have also contributed to decreases further along the curve. Data from ICE shows that the Carbon EUA and Rotterdam Coal European benchmarks saw daily losses of 2.7% and 1.6% respectively, which possibly drove competitiveness across energy markets.
This morning, gas prices have continued to drift lower with the Summer 25 front-season contract currently being offered circa 1p/therm (0.034p/kWh) when compared to its previous settlement, at time of writing.
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Price commentary courtesy of Crown Gas and Power 