Gas prices displayed mixed movement on Wednesday as a rise in Norwegian imports, following the end of maintenance helped to weigh on near-curve contracts. The improved supply picture erased some of the gains recorded in the previous session on the back of another proposed cap at the Groningen gas field. Meanwhile, a late rise in oil prices offered support to contracts on the far-curve.
Prompt gas prices climbed higher yesterday afternoon on the back of maintenance at the Gullfaks gas field in Norway which will start today. Upward movement was slightly restricted on the near-curve as an LNG delivery is expected to arrive at the Isle of Grain today. Meanwhile, weaker oil prices helped to weigh on some contracts further along the curve.
Norwegian flows are back to normal levels this week which led to balanced gas systems across Europe on Monday; resulting in losses across the near-curve. Meanwhile, oil prices continue to weaken, helping to pressure down contracts further along the curve.
An improvement in Norwegian imports into the UK led to a long gas system on Friday which helped to weigh on near-curve contracts. A slightly cooler weather forecast limited some downward movement but another drop in oil prices resulted in losses further along the curve.
Gas contracts displayed mixed movement yesterday with a short UK gas system helping towards gains on the near-curve and falling oil weighing on prices further out. Cooler temperatures are expected to lift temperatures today and over the weekend which provided further upward pressure on prompt prices.