Near term contract prices have fallen this week as demand is expected to be reduced following the increase in temperatures, according to Inenco’s Y report.
Energy Trader Kayleigh Winstanley said: “Seasonal contracts have remained pretty balanced however still close to contract lows torn mainly between the comfortable near term supply demand fundamentals but also concerns over gas supplies as we head into winter as gas stock levels remain comparatively low to previous years.”
LNG contributions begin to fall as the cargo arrival scheduled for the month of June looks “lackluster” compared to May. Maintenance at the UK Continental Shelf has reduced flows by 9%.
Ms Winstanley said it is a good time to buy for those with fixed price contracts.
For those on flexible contracts she added: “For costumers with a larger hedging place I would suggest possibly holding just to see if the market can push through this lower support levels.”