Gas prices down amid improved demand forecast
Gas prices retreated on Friday amid improved demand forecasts and tumbling coal and carbon prices.
The upward momentum observed over the prior two sessions was brought to an abrupt end, with the May 24 front-month contract shedding a substantial 0.1p/kWh when compared to its previous close.
Upward revisions to temperature forecasts across weeks 18 and 19 likely served as a key source of help; the latest run of our 14-day model shows that demand will average comfortably below seasonal norms across the next 2-week outlook, helping to keep a lid on heating-related demand.
Weakening carbon and coal prices also likely helped; according to data from ICE, the Rotterdam Coal and Carbon EUA benchmark contracts saw day-on-day losses of 4% and 2.1% respectively.
NBP contracts continue to venture south this morning, with the Winter 24 front-season contract currently being offered circa 0.09p/kWh below its previous settlement at time of writing.
The UK is currently consuming 32.49 GW’s of electricity (10:00 – 10:30).
The wind has picked up a lot today and is currently generating 13.60 GW’s (38.95%) of the UK’s total electricity with gas for power only having to generate 2.03 GW’s (5.82%) of the total.
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