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Colder weather lifts demand and prices - 12-01-2022

Closing Price: A third day in a row prices have dropped as a steady steam on LNG supply continues into the UK and Europe. Temperatures were also slightly above seasonal averages, but a cold spell is about to set in for the UK now.

Opening Price: System demand has shot up on the back of colder weather conditions, resulting in a slight price rise first thing. The colder weather for the next few days has the potential to bring more market volatility, but the system is well balanced and supplied. Prices are therefore a little mixed in movements this morning.

An outage at Australia’s Chevron Corp’s Gorgon LNG export facility is something to keep an eye on. Though we don’t source LNG from Australia, mainly because of the vast distance, a significant outage may amplify LNG competition with Asia and could tighten global supply. The severity of the outage is not yet known. NATO are meeting today to discuss the Russian-Ukraine conflict.