After a relatively quiet day of trading, gas prices ended on a bullish note, with a combination of a weaker pound against the euro and news of a new outage which will cut Rough withdrawals until 1st January helping to curb early losses.
Gas prices ended the week on a bullish note, supported by an intraday unplanned outage at Rough storage facility on Friday, colder weather forecasts for the week ahead and strong coal and oil prices.
A stronger US Dollar, following the decision at the latest Federal Interest Rate meeting offered some support to the gas curve yesterday but the overall trend was bearish throughout the session. The main market driver was mild weather which has resulted in weak demand levels, keeping storage withdrawals to a minimum.
The UK gas system was long throughout yesterdayâ€™s session as residential demand remained below the seasonal average due to mild weather. The outage at the Bergermeer storage site was also expected to be resolved this morning and movement at the front of the curve was largely bearish. Contracts further out were more stable due to an expected drop in temperatures next week, while LNG supply remains weak.