News that the 20 wells would be available at the Rough storage facility from the 1st of November helped the Winter-16 contract shed from its price yesterday. The losses filtered through to the far-curve with the help of weakening Brent. At the front of the curve, prices also moved down in the afternoon with the exception of the prompt following a bullish opening caused by an undersupplied system.
Gas contracts moved down on Friday as the Nord Stream interconnector returned online as seasonal maintenance was completed. In terms of the UK, healthy levels of wind power resulted in reduced coal-fired power generation, while UKCS production also improved, contributing to a long gas system.
The UK gas system was short for the majority of yesterdayâ€™s session but became balanced in the afternoon which resulted in a downward correction on the near-curve. Prompt prices were also pressured down by an announcement that the Nord Stream interconnector between Russia and Germany would return online today. Contracts further along the curve also displayed small losses on the back of currency movements, ignoring a rise in Brent.
The UK gas system moved into oversupply yesterday which applied downward pressure on the near-curve in the afternoon, during a session of mixed movement. The system was 20mcm long, helped by weaker demand and resulted in a loss on the prompt. Further out, an increase in oil prices helped contracts climb higher, ignoring a rebound in the Pound.
Gas contracts ignored weaker demand levels on Tuesday with a stronger Dollar and gains on the oil market dictating the curve. Brent continues to act as the main market driver for gas following comments made by OPEC members in regards to working towards market stability and being open to a potential freeze on oil production.