Gas prices moved down during Fridayâ€™s session as residential demand was below average and supply levels were healthy. The oversupplied system helped near-curve contracts to decrease, with two LNG deliveries scheduled to arrive at South Hook further assisting the bears. Further along the curve, contracts shed from their price on the back of weakening Brent.
Day-Ahead gas displayed a rise towards the end of yesterdayâ€™s session as the system fell short following a decline in Norwegian supply. A colder weather forecast for today and the weekend also provided support, with a rise in demand levels expected. However, falling Brent and the return of milder weather next week helped contracts move down further along the curve.
Gas prices continued on a downward trend yesterday as supply levels were strong, residential demand remained below the seasonal average and oil displayed another loss. The UK gas system was oversupplied as a result of this healthy supply/ demand picture, with LNG send-outs rising to 50mcm.
Residential demand and gas-fired power generation in the UK was low yesterday, resulting in an oversupplied system and a decrease in prices. Oil prices also weakened and overall supply levels were comfortable as bearish movement was displayed throughout the session.
Weaker residential demand and healthy supply levels weighed on gas contracts yesterday. Demand rose to 139mcm, compared to 116mcm on Friday but still remains well below the seasonal norm, while stronger wind levels lessened the UKâ€™s need for gas-fired generation. The UK gas system was oversupplied as a result, also helped by strong Norwegian imports and a rise in LNG send-outs.