Prices down again amid expectations of milder weather

Gas prices continued to shed value on Thursday, with the front-month contract posting the largest losses beyond the prompt after plunging an additional 4.6p/therm (0.16p/kWh) below its previous settlement.

Expectations of relatively mild weather in the last weeks of 2024 served as a key source of pressure at the front-end.

The latest refresh of our 14 day model maintains a bearish demand outlook from 15th December, extending out until at least Thursday 26th. Strong LNG supplies continued to serve as an underlying source of pressure.

Taking a look at the latest shipping signals, we can see no relent in the number of vessels on course to British terminals; up to 11 vessels could arrive by years end, 9 of which are laden with cargoes from the United States.

NBP contracts have so far held onto losses posted in the previous session, with most being offered very much in line at time of writing.

If you want to see more information on the wholesale market trends subscribe to our weekly report here.

Price commentary courtesy of Crown Gas and Power