The front of the gas curve moved down yesterday with losses on the power market a contributing factor. Improved power generation and a rise in temperatures was also expected to reduce gas demand today, further weighing on the prompt.
A milder weather forecast for today and an improved power supply outlook helped to pressure down gas contracts yesterday. Outages in Norway continued to restrict exports to Europe but this failed to provide much support to the curve. Further out, contracts were pressured down by weaker power and coal, while oil was stable.
A milder weather forecast for this week helped to pressure down near curve gas contracts on Friday as demand levels are set to fall. Withdrawals are also set to restart at the Rough storage facility on Friday, with a drop in coal and power prices also helping towards the losses.
Milder temperatures are expected in the UK next week and exports to Belgium decreased, helping towards losses on the near gas curve yesterday. The Pound also strengthened against the Euro as it is likely that the UK will be willing to pay to access the EU Common Market; further weighing on gas contracts.
Centrica have announced that withdrawals at the Rough storage facility are set to resume on the 9th of December, resulting in downward movement across the near-curve yesterday morning. However, news from the OPEC meeting in Vienna led to rising oil prices, resulting in rebounds across the curve, with a cold weather forecast also providing on-going support.