Gas prices moved down towards the end of Fridayâ€™s session after displaying strong gains in the morning. Prices initially moved higher due to a strong demand forecast for the weekend on the back of colder temperatures. However, the system was oversupplied thanks to stable BBL flows and a rise in Norwegian imports, while LNG send-outs also remained healthy.
Gas prices displayed strong gains during Thursdayâ€™s session as temperatures are set to drop over the weekend, which will lead to a significant rise in demand. Production cuts at Hollandâ€™s largest gas facility also returned as a market driver later in the session.
Gas prices recorded strong gains in the morning following the announcement of production cuts at the Groningen facility in Holland for start of the 2015-2016 gas year. However, the Dutch Council of State will allow output to continue at 33bcm until then in case of strong demand over the winter period; resulting in significant downward movement across the curve.
The gas curve displayed further gains yesterday as a colder weather forecast and uncertainty regarding production cuts at the Dutch Groningen facility were the main market drivers. UK residential demand remained significantly below average but a halt in Norwegian imports offered support to the prompt.
Gas prices moved higher on Monday as a colder weather forecast and unplanned outages offered support. Supply levels decreased as the Troll gas field, the North Morecambe field and the Bacton entry point suffered outages which reduced Norwegian and UKCS flows, resulting in a short system.