Gas prices continued to display a downward trend yesterday on the back of a healthy supply picture and weakening coal & oil. LNG send-outs increased further with deliveries expected to dock in the UK over the next couple of days, while above average temperatures are expected next week, also weighing on prices. Elsewhere, restrictions on Chinese domestic coal production continued to effect the worldwide market.
Improved Norwegian and UKCS supply, as well as an upward revision in temperatures for next week helped to pressure down contracts on the near gas curve yesterday morning. However, a rise in coal and oil contracts helped to recover these losses in the afternoon, with a weaker Pound also adding to the bullish sentiment.
Movement on the gas curve was largely bearish yesterday despite most contracts posting gains at the opening of the session. An upward revision in temperatures and weakening coal and oil markets helped towards the downward trend. In terms of supply, several LNG deliveries are expected to dock in the UK over the next few days, resulting in a rise in send-outs, while news relating to the Rough storage site also weighed on contracts.