The UK gas system was oversupplied throughout Tuesdayâ€™s session despite a halt in Norwegian imports due to planned maintenance. Higher UKCS production and weaker demand helped the system remain long and also led to an increase in exports to Belgium. This healthier supply picture helped near-curve prices record a loss, while a drop in Brent weighed on contracts further along the curve.
Gas contracts moved higher on Friday ahead of planned maintenance work at Norwegian facilities which will limit imports into the UK. A rebound in oil prices also offered additional support further along the curve, while movement on the prompt was limited by a weaker demand forecast over the bank holiday.
Gas contracts initially opened higher yesterday due to a comfortable gas system and a weaker demand forecast for the Bank Holiday weekend. However, prices gradually rose throughout the session due to an increase in Brent, a weakening Pound and a drop in Norwegian flows.
Improved supply levels helped to weigh on near-curve gas prices on Wednesday, with higher Norwegian flows into Europe and an increase in LNG send-outs in the UK, with several deliveries expected before the end of August. Contracts further along the curve remained bearish with falling oil the main market driver.
Prompt gas contracts were supported by an increase in gas-fired power generation and a rise in exports to Belgium. Maintenance at the Mallnow entry point limited Russian gas flows into Europe which tightened gas systems on the continent, with Norwegian imports also lower than previous sessions. Further along the curve, movement was generally bearish with Mondayâ€™s news in regards to Roughâ€™s withdrawal rate continuing to influence the Winter-16 contract.