Gas prices displayed further gains yesterday, with rising oil the main market driver as Brent reached a three-week high. Gas demand in the UK was also 6% higher than Wednesdayâ€™s levels and Dutch production fell by 40mcm which tightened the system; a milder weather outlook for next week did little to restrict the upward movement.
Increased demand levels were forecast for today due to a slight drop in temperatures which resulted in gains for Day-Ahead gas on Wednesday. The rest of the curve was pushed higher by a strengthening oil market despite below average demand and a comfortable supply outlook for the coming weeks.
Gas prices displayed mixed movement yesterday and were dictated by a strengthening oil market in the afternoon, despite a healthy supply/ demand picture. Upward movement on the near-curve was limited slightly as the Pound strengthened against the Euro, while the milder weather forecast also offered support to the bears. Demand levels were slightly higher than Monday which tightened the gas system somewhat but overall fundamentals remain healthy.
Gas prices recorded losses yesterday afternoon, wiping out some of Fridayâ€™s gains with weaker demand and falling oil the main market drivers. Gas demand in the UK fell by 20% compared to Fridayâ€™s levels as a result of milder weather and improved renewable generation. The UK gas system was oversupplied throughout the session despite a 20mcm drop in Langeled flows.
Gas prices were on the rise on Friday, despite weaker demand levels with direction coming from a stronger oil market. Temperatures are expected to rise to above average levels for the rest of the month, while stronger wind output should also reduce the nationâ€™s reliance of gas-fired power generation.