A colder weather helped near-curve gas contracts to increase, with residential demand sitting 20% above the seasonal norm yesterday. However, milder temperatures are expected later in the week, capping some of the gains. Contracts further along the curve were generally stable as bullish momentum on coal and oil markets eased.
Gas prices were pushed higher on Friday afternoon following a sharp rise in oil prices, assisted by rising coal and a colder weather outlook for this week. However, Norwegian flows improved and the Pound strengthened against the Euro, limiting some of the gains.
Gas contracts displayed mixed movement on Thursday as the system fell short in the afternoon due to weakening Norwegian flows. Further out, a strong rise in oil prices was ignored and instead contracts were pressured down by weaker coal and power prices.
Gas contracts increased across the curve yesterday with support provided by unplanned outages and a strengthening coal market. The Elgin-Franklin field did not return online until Wednesday evening and Norwegian flows were down due to issues at Kollsnes, limiting supply via the SEGAL pipeline into the UK.
Near-curve gas prices were supported by unplanned outages at the Elgin-Franklin field and the Kollsnes processing plant yesterday which reduced supply levels by around 16mcm. Movement further along the curve was slightly bearish as movement on coal and oil markets was stable.