Gas prices moved down yesterday with bearish pressure coming from the EU’s decision to grant Gazprom access to additional capacity on the OPAL pipeline. Coal prices also corrected down but the losses were limited by stronger Brent and a short system, as Norwegian flows remained low.
Falling oil prices helped gas contracts decrease on Friday afternoon, erasing the gains recorded at the start of the session. The outage at Kollsnes continued to restrict supply levels in the UK, contributing to bullish movement in the morning. On the far-curve, prices were dictated by rising coal prices and a stronger Euro before the drop in Brent.
The on-going outage at the Kollsnes processing plant continued to restrict Norwegian flows into the UK, although outages at the Troll and Kvitebjorn fields have been resolved. These supply restrictions supported contracts on the near-curve, with a weaker Pound also a bullish factor.
Gas prices were relatively stable on Wednesday as the majority of fundamentals were largely unchanged. Coal prices increased in the morning but fell later in the session and gas-fired power demand was down due to healthier renewable generation.