Gas prices were generally stable on Friday with the morningâ€™s losses erased by increases on the power market in the afternoon. Bearish Brent helped to restrict some of the upward movement on the far-curve, while news regarding a potential rise in Russian flows to Europe also limited gains.
The majority of gas prices moved higher on Thursday as on-going issues regarding power generation offered support, with CCGT (Combined Cycle Gas Turbines) likely to make up the shortfall. A planned outage in Norway also helped to push contracts higher, while colder temperatures have been forecast for the start of November.
Gas prices posted losses yesterday afternoon as a result of an oversupplied system and falling Brent. Planned maintenance in Norway failed to support the prompt, with a milder weather forecast for today and an expected drop in gas-fired power generation providing downward pressure.
A planned outage in Norway this Friday is set to last until the 3rd of November, restricting European imports by 25mcm and offering support to the near gas curve. Further support was provided by a colder weather outlook for the start of November, while gas-fired power generation remains high due to low wind production. Falling Brent did little to limit the gains further out as the Pound weakened against the Euro once more.
Gas prices found support from an increase in coal and power contracts yesterday, with weak wind production and low nuclear availability resulting in an increased reliance on gas-fired power generation. The front of the curve also found additional support from an expected drop in temperatures next week. Elsewhere, the LNG outlook is forecast to remain tight for the rest of this month and throughout November due to limited deliveries.