Expectations of cold weather and reduced imports into the UK helped to push gas prices higher throughout Friday’s session. Commodity markets were relatively stable, with oil markets waiting for fresh direction.
Gas contracts initially opened lower yesterday but strengthened as the session progressed due to a higher demand outlook. The system was undersupplied throughout the session, as demand was up and flows were unchanged.
Sentiment was little changed yesterday, although a rise on oil markets offered support in the morning. The rest of the session was driven by a mild and windier weather outlook and an expected rise in LNG send-outs next month.
Despite a much healthier supply/ demand outlook, gas prices were slightly bullish yesterday as UK and European markets were dictated by lockdowns which led to a downward revision in fuel demand forecasts.
Milder temperatures were forecast for today which was expected to reduce demand, helping towards losses at the front of the curve. LNG send-outs remained low but flows via the BBL and IUK pipelines have been healthy and consistent.