Gas prices increased by the end of yesterday's session as unscheduled maintenance took place at a gas field in Norway which reduced flows into the UK. It was also announced that withdrawals from the Bergermeer storage facility will be cut by 50% starting from today. Meanwhile, gas demand rose to 267mcm, 63mcm above the seasonal norm, however, strong LNG supply and a milder weather forecast helped to limit the gains.
Healthy supply levels and a stronger Pound helped to pressure down gas prices yesterday. Numerous LNG deliveries are expected to arrive in the UK this month which resulted in high send-outs. Norwegian supply was also comfortable despite the outage at the Heimdal platform and countered a slight rise in demand levels.
Gas prices decreased on Tuesday as healthy supply levels outweighed a rise in demand which was caused by colder weather. Residential demand increased by 10% compared to Monday's levels, while exports to Belgium were also higher. After initially opening short, the system became balanced in the afternoon as LNG send-outs and storage withdrawals strengthened; this helped the prompt shed from its price.
Spot power prices increased on Friday but display losses this morning, however, the overall outlook is bullish with colder temperatures pushing demand levels higher, while renewable generation also remains low.