Gas contracts moved down on Thursday as oil prices continued to plummet and Norwegian imports into the UK increased. Flows via the Langeled pipeline rose by 35mcm as outages at Norwegian facilities were resolved, leading to an oversupplied UK gas system. This improved supply picture resulted in strong losses on the near-curve, although a weaker Pound limited some of the downward movement.
Gas prices initially moved down yesterday with a drop in Brent the main market driver, although tighter supply resulted in gains later in the session. Norwegian exports rose to almost 300mcm in the morning but unplanned outages at Troll and Kvitebjorn reduced imports in the afternoon, resulting in a slight rebound in prices.
Near curve gas contracts decreased on Tuesday as exports to Belgium were at their lowest level since the start of the month. The system was balanced throughout the session and flows via the Bacton terminal displayed a slight recovery in the afternoon. Elsewhere, news regarding the Rough storage facilityâ€™s withdrawal curve for its 4 active wells will be released in the next few days. Further out, prices continued to be pushed lower by weakening Brent.
Numerous unplanned outages in Norway reduced imports into the UK yesterday which helped to support contracts on the near-curve, while weakening Brent weighed on prices further out. Maintenance at the Heimdal facility was extended until the 8th of August, while the Kvitebjorn field and the Karsto processing plant were also offline.
Gas contracts displayed mixed movement on Friday with weakening oil prices applying downward pressure on the far-curve. However, weak economic data coming out of the UK and another drop in the Pound helped to support prices at the front of the curve. Low Norwegian flows and reduced LNG-send-outs also tightened supply and contributed to the gains.