Gas prices displayed mixed movement yesterday with a long system weighing on near-curve contracts. An uncertain weather forecast limited some of the losses, while contracts further out followed stronger coal and oil markets. However, the Pound strengthened against the Euro as Brexit negotiations have progressed, capping some of the gains on the far-curve.
Gas prices decreased during Tuesday’s session on the back of an oversupplied system and a slight upward revision in temperatures for next week. Supply levels were healthy and helped the system cope with a rise in demand, while bearish movement on the oil market helped to weigh on the far curve.
Gas prices were bullish yesterday due to a sharp drop in temperatures which lifted residential demand. Wind levels were also forecast to decrease today with gas-fired power generation expected to make up the shortfall. The oil market was stable throughout the session, while coal prices moved down, providing little support to far-curve prices.
27th November 2017 | Posted by: Stephen Berrey | Market Analysis
There was a significant increase in European gas prices on Friday, both on the spot and on the curve. This was on the back of rising demand due to colder weather. Additional support was provided by bullish oil and coal prices.
Near-curve gas prices increased to their highest levels since February as temperatures are set to turn cold next week, increasing demand levels. The prompt found additional support from an extension to the outage at Oseberg in Norway, while the LNG outlook also remains weak. Meanwhile, coal prices strengthened, assisting prices further along the curve in moving higher.