Gas prices up amid escalating Israel and Iran tensions

Escalating Israel-Iran tensions combined with falling supplies to drive up gas prices on Monday.

The biggest moves were observed across the near-curve contracts which saw upside of circa 0.06p/kWh when compared to their previous close, with much smaller moves observed beyond the front winter.

The missile barrage launched by Iran against Israel on Saturday likely spooked global gas markets, spurring fears of a wider conflict in the region.

Norwegian supply disruptions also likely heaped pressure on prices, especially to short-term supply contracts.

According to data from offshore operator Gassco, flows into Britain’s Easington terminal fell by a sharp 70.7% when compared to Fridays gas-day amid the onset of capacity restrictions at the major Nyhamna facility over the weekend that climbed to 69.8mcm on Monday.

Prices have so far continued their upwards trajectory this morning, with reports that Israel will take retaliatory action against Iran propelling the front month and season contracts circa 0.1p/kWh above their previous settlements, at time of writing.

The UK is currently consuming 35.70 GW’s of electricity (09:00 – 09:30).

Wind is currently generating 16.94 GW’s (45.18%) of the UK’s electricity with gas only having to contribute 1.34 GW’s (3.57%) at the time of writing.

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