Gas prices for July 2014 were looking fairly flat this morning despite prices for the next few days edging higher, according to npower’s daily market report.
Steve Walker, Client Portfolio Manager said prices further out the “curve” aren’t following suit for more recent prices.
Mr Walker said: “The curve opened flat this morning despite near dated gas contracts opening higher, as increased demand from CCGT power stations and medium range [gas] storage facilities offset the reduction in exports through IUK.”
The IUK gas interconnector is shut for maintenance for the next two weeks, meaning exports to Belgium will be curtailed for the period, he added.
Prices on the “prompt” market – generally for gas needed over the next few days – hit around 37pence per therm yesterday.
The market expert said this helped encourage extra gas fired generation to run, “with demand from the power sector up 5 million cubic meters to 46mcm today”.