Strong power sector offtake, below average temperatures and tightening supply are supporting prices.
The UK NBP day-ahead price rose to around 53 p/th in early November before falling to around 46-47 p/th towards the middle of the month. Strong growth in the UK’s gas demand in October and early November supported prices, with a cold snap in early November forcing up heating demand. On the supply side, the delay in reopening Rough has limited the amount of gas available to withdraw from storage. Although the UK has made withdrawals from other facilities since the start of November, they have been insufficient to prevent price increases. Additionally, although LNG flows from terminals are still supplying the market, limited new cargoes arrived in early November.
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