Gas prices turned bearish yesterday afternoon despite strong upward movement at the start of the session. The UK system was slightly short due to a rise in exports to Europe following the return of the interconnector pipeline, offering support in the morning. However, contracts were pressured down by a weaker demand outlook and significant losses on the coal market.
Gas prices increased yesterday with little change to fundamentals and support coming from the coal and oil markets. Gas demand was higher in the UK and the IUK interconnector was due back online today which will result in a rise in exports. Meanwhile, the outage at the Gjoa platform in Norway was unresolved, tightening supply levels.
Gas prices rose across the curve on Tuesday as Norwegian flows into the UK remained low due to an outage at the Gjoa platform, offering support to the near-curve. Further out, contracts were pushed higher by gains on the coal and oil markets. In other news, the production quota at the Troll gas field was increased to 36 Bcm for next year, a rise of 3 Bcm.
Gas prices moved higher yesterday with a short system supporting contracts on the near-curve. An unplanned outage in Norway restricted imports into the UK and UKCS production fell, with weak wind levels contributing to an increase in gas-fired power generation. Further out, a rebound in oil prices helped contracts add to their price.