Gas prices displayed mixed movement with news of a 1-month outage at a nuclear power plant in France providing support as CCGT generation will be required to make up the shortfall. Meanwhile, contracts at the back of the curve displayed losses with direction coming from falling coal and oil.
Gas prices displayed mixed changes on Wednesday, with the majority of contracts rebounding from a bearish opening. A planned one-day outage at the Dornum terminal limited Norwegian flows to Europe, providing support to the near-curve. Meanwhile, contracts at the back of the curve displayed some losses following downward movement on coal and oil markets.
Near-curve gas prices were generally stable yesterday due to scheduled maintenance at Norway’s Dornum terminal which will limit flows into Europe. The short term supply/ demand picture is rather healthy but there are some concerns in regards to winter storage levels due to Rough’s closure and restrictions at Groningen. Further out, prices were pressured down by falling coal and oil markets.
Gas prices were pushed higher by bullish movement on the oil market yesterday, with political tensions between Turkey and Iraq threatening to impact exports from the Kurdistan region. Colder temperatures are also expected to lift demand levels next week, providing further support to prices on the near-curve.
Gas prices moved down on Friday with the help of a more positive supply outlook across Europe. The re-opening of the Nordstream pipeline resulted in a sharp rise in Russian flows, while Norwegian imports into the UK have also ramped up, in addition to improved UKCS production.