The price of natural gas on the UK’s NBP wholesale market is currently at three year lows with weak pricing levels to persist through the coming summer, due to still-healthy storage levels after an unusually mild winter.
In a report on the market outlook for this summer analysts at Reuters Point Carbon said this week that the UK gas market will remain bearish during the second half of May, June and at the end of July as consumption is forecast to be lower than supply.
Currently, UK gas prices for prompt delivery are almost 30% lower year-on-year, in line with lows not seen since October 2011.
The UK’s gas storage levels are in healthy shape for this time of year meaning there is less demand for gas to be used for storage injection, which will lower the market price for gas.
UK gas prices at three year lows, and set to remain weak this summer