Maintenance at Kollsnes is scheduled to begin today which will reduce Norwegian flows by 20mcm, with a further decrease expected next week. Another Norwegian facility will also be undergoing maintenance over the same time period and this helped gas prices climb higher on Thursday, with bullish oil also a factor.
Gas prices eased down yesterday as commodity markets weakened; oil prices decreased due to a rise in US crude stocks, while coal was pressured down by Chinese demand fears. However, low LNG send-outs and planned outages in Norway limited some of the losses on the near-curve.
Gas contracts increased yesterday with support provided by a bullish overall energy complex. A drop in Norwegian and Russian supply into Europe also provided support to the front of the curve. However, gains were limited in the afternoon due to a slight drop in oil.
Gas prices increased on Monday, reaching new highs on the back of a bullish coal market and reduced supply levels. Planned maintenance has led to supply constraints in Europe and a number of LNG deliveries are expected to make up the shortfall. Stronger oil prices also remained a supportive factor at the back of the curve.
Gas prices inched higher on Friday with support provided by stronger coal and oil markets, as overall fundamentals were little changed. Supply levels were comfortable which capped gains at the front of the curve, although maintenance is scheduled in Norway this week which will provide bullish sentiment.