Gas prices ease amid good storage levels
Gas prices eased off on Tuesday as high storage levels outweighed dwindling LNG supply.
The biggest moves were posted at the front-end, with the April 24 front-month contract observing losses of 0.1p/kWh when compared to its previous close.
Healthy EU storage reserves likely played into the bearish sentiment. According to data from Gas Infrastructure Europe continental storage stocks currently stand at 61.6% fullness, this is almost 3% above the same date last year.
Furthermore, expectations of temperatures remaining around seasonal averages perhaps eased supply concerns and helped ease pressure on near-dated contracts.
Our latest 14-day forecast model shows that demand is anticipated to remain in line with seasonal norms for the remainder of week 10 before dropping below average over the course of week 11.
This morning gas prices have opened very much in line with their previous settlements at the NBP at time of writing.
In terms of UK’s current electricity demand, if we check the latest half hourly period at the time of writing (10:30 – 11:00), electricity demand is currently 36.25 GW’s in the UK.
In terms of the generation mix, gas is currently generating 9.13 GW’s (23.70%) of the UK’s electricity. Wind power is generating 11.23 GW’s (29.15%) of the UK’s total electricity this morning.
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