Gas prices moved higher yesterday following increases on coal and carbon markets. However, healthy supply and a mild weather outlook in the short term restricted upward movement at the front of the curve. LNG send-outs in particular remain strong, with 5 deliveries expected to dock in Europe this weekend.
Gas prices stabilised during Tuesday’s session with no major shifts in fundamentals and commodity markets moving in different directions. Coal and oil markets moved down while carbon displayed a rebound, with healthy wind levels and mild weather helping to weigh on the prompt.
A mild weather outlook helped to weigh on near-curve gas prices on Monday, with a significant downward correction in coal prices pressuring down the far-curve. Oil prices moved slightly higher as sanctions on Iran came into effect but this failed to provide much resistance.
Gas prices moved higher on Friday despite a milder weather outlook for this week as well as strong LNG send-outs across Europe. Rather than take direction from comfortable fundamentals, gas prices were instead dictated by a stronger coal market and profit taking by traders.
Coal and oil recorded strong losses yesterday which heavily weighed on the gas curve. A potential oil glut led to a significant decrease in the price of Brent crude, while further bearish pressure was provided by weaker carbon and power contracts. A short system had little bearing on the curve as the overall supply picture is healthy.